Key Points
Banks are beginning to take a rational view of regulations to let wealthy Indians invest in offshore funds in financial centres like Singapore..
In the past one month around four ultra-high net worth individuals were allowed to remit money to foreign funds whose managers are regulated but not the fund themselves, sources told ET...
The development is being closely tracked by private wealth managers and financial experts catering to rich clients who typically park a slice of their wealth in overseas securities, art, properties and funds betting on startups and other investment themes across markets...
Since in many jurisdictions, funds, which are primarily pooled vehicles, are not directly regulated entities, banks, acting as authorised dealers (ADs) handling remittance of payments and foreign exchange, clamped down on several investments..
Some banks are now taking a less harsh and more realistic interpretation of the central bank guidelines to approve investments in offshore funds as long as the manager of the fund - or, the asset management company - is a regulated entity...
