Key points we discussed in this chapter.

1. GIFT City is not just another route to global markets. It is a different regulatory framework altogether, alongside the Indian financial system rather than inside it.
2. It is governed by IFSCA rather than SEBI, and the RBI’s seven billion dollar cap on overseas investments does not apply to funds launched here.
3. Within GIFT City, there are three ways to invest globally. Exchange platforms like NSE-IX Global Access and India INX Global Access work like existing apps such as Vested, but on regulated exchange infrastructure with IFSCA oversight. NSE-IX has tied up with ViewTrade for US market execution and plans to expand to over 30 global markets.
4. UDRs are instruments listed directly on NSE-IX, backed by a dual custodian structure involving HDFC Bank and Deutsche Bank, held in your own demat account for safety.
5. GIFT City mutual funds like the DSP Global Equity Fund and the Parag Parikh IFSC funds directly own global stocks or track global indices, are denominated in dollars, and have a minimum investment of $5,000.
6. The taxation of GIFT City funds works differently from everything else. You pay zero capital gains tax at the time of redemption. The tax is paid inside the fund itself, at roughly 43% for short-term gains and 15% for long-term gains.
7. Passive funds with low turnover pay less. GIFT City funds also avoid US estate tax and do not require Schedule FA reporting, which matters for investors building larger portfolios over time.

In the next chapters, we will look at managed portfoiols and private markets, two more dimension of global investing that has now started becoming accessible to Indian investors.