Artha Bharat Secures Full ADGM Licence and Shifts Two Master Funds From GIFT City

Artha Bharat Investment Managers has secured a full Financial Services Permission from Abu Dhabi Global Market's regulator, allowing the GIFT City-based firm to manage funds, run discretionary portfolios and advise professional clients in the UAE. Business News Today reported the licence was granted to its ADGM entity following an in-principle approval.

What the ADGM Permission Covers

The permission lets Artha Bharat deal more directly with Middle Eastern sovereign wealth funds, family offices and professional non-resident Indian investors who prefer managers regulated in an established international financial centre. The group is already moving the master funds of two strategies from GIFT City to Abu Dhabi, a shift the report ties to friction between India's tax rules and the ambition to make the International Financial Services Centre a seamless hub for cross-border capital.

Artha Bharat plans to launch its first vehicle there using an Incorporated Cell Company structure, similar to Singapore's variable capital companies, which allows multiple separately incorporated funds under one umbrella. The funds are expected to be offered as Exempt Funds through private placements to professional clients, with a relatively accessible minimum subscription.

For resident Indian investors, the ADGM platform is positioned as a route to global diversification: gains can remain within the fund and be reinvested without each transaction becoming a taxable event, with tax crystallised only on distributions or redemptions. Units of an overseas equity-oriented fund held for more than 24 months currently attract long-term capital gains tax at a base rate of 12.5%, plus surcharge and cess.

The Two Funds Leaving GIFT City

Earlier reporting identified the funds being relocated as the master structures of the Artha Global Multiplier Fund, which focuses on US consumer themes, and the Artha Bharat Absolute Return Fund. Under current rules, a GIFT City Category III fund generally qualifies for specified-fund status only if its units, other than those held by the sponsor or manager, are held by non-residents. When one GIFT City vehicle invests in another, the intermediate layer can put the receiving fund's tax status at risk, even if the ultimate capital comes from overseas investors.

Artha Bharat has also sought clearer tax treatment for outbound investment structures so that tax is levied at the investor level in their home jurisdiction rather than creating uncertainty at the fund level in India. The firm manages more than $800 million across its platform and continues to run inbound strategies from GIFT City. The ADGM move is limited to certain outbound-oriented master funds, and the firm still sees GIFT City as its base for inbound foreign portfolio investment products and third-party management services. The broader group also has regulated operations in Mauritius.

Artha Bharat's Platform Scale

According to akta.pro company records, Artha Bharat states $750 million+ in assets under management on its homepage and About page, reflecting total assets across all funds and jurisdictions. The same records list 6+ fund portfolios across its multi-jurisdictional platform and four global hubs in India (GIFT City), Mauritius, UAE (ADGM) and the British Virgin Islands. The company was founded in 2022 and is headquartered in Gandhinagar.

Earlier Moves Toward Abu Dhabi

On October 20, 2026, Business Standard reported that Artha Bharat Investment Managers IFSC was relocating two funds to Abu Dhabi Global Market, citing tax uncertainty and compliance burden, affecting the $112 million Artha Global Multiplier Fund and the Absolute Return Fund, with a new ADGM fund planned. On October 21, 2026, BusinessLine reported the firm planned to move two funds managing over $125 million to Abu Dhabi and convert its GIFT City vehicles into feeder funds, addressing lower investment thresholds and operational friction with overseas service providers.

What Comes Next for the ADGM Vehicle

The licence forms part of Artha Bharat's longer-term push towards a multi-jurisdictional platform aimed at significantly scaling assets over the coming years, while giving investors access to Indian and global opportunities through structures they and their advisers may find more straightforward.