PPFAS Asset Management is planning to set up a subsidiary in GIFT City and plans to launch operations there in the next six months, said Rajeev Thakkar, chief investment officer and director.

“We are creating a subsidiary in GIFT City. We have applied to the city regulator GIFT for registration of a subsidiary. The first product from this subsidiary could arrive in six months,” Thakkar said. sector of activity in an interview.

He was in the capital to speak at the 8th Value Investing Pioneers Summit, organized by CFA Society India, an association of investment professionals.

Thakkar highlighted that many external investors who do not wish to obtain FPI registration in India or NRIs who do not wish to register PIS in India (individuals and institutions) can, through PPFAS subsidiary GIFT City, obtain a net asset denominated in dollars. Value (NAV). They can invest in GIFT City-based funds and can also get Indian equity participation, he added.

“We are looking to introduce both inbound and outbound products,” he added.

Asked about the strategic advantage of setting up a subsidiary in GIFT City, Thakkar said that for foreign investors, it could mean less paperwork and no PAN requirement. In the case of PPFAS, the advantage will be the possibility of accessing a new customer segment.

Massive REIT sales

Thakkar pointed out that REIT as a category has several elements: sovereign funds, pension funds, emerging market funds and India-specific funds. Why they sell is difficult to judge, as different people may have different needs.

“Some may be facing buyouts. Some might reallocate their investments from India to other markets, others might adjust the weighting between bonds and equity market investments. These tend to be unpredictable. However, a general theme is that they are concerned about the valuation of Indian markets,” Thakkar said.

He emphasized that it’s not just REITs that are selling; even FDI sales have taken place, such as companies that have subsidiaries in India and have reduced their participation (Whirlpool, Hyundai).

Thakkar also noted that “Sell India, Buy China” could be a reason for aggressive REIT sales.

However, he expressed confidence that India’s history will continue to unfold.

In the initial public offerings (IPOs) recorded this year, Thakkar said the number and size of IPOs have increased. “Even the QIPs have increased. IPOs tend to be aggressively hailed.

If the trend continues at the same pace, stock prices will be weakened. Liquidity could shift from the secondary market to the IPO markets,” he added.