India's Gujarat International Finance Tec-City (GIFT City) is attracting investors seeking global equities with its relaxed limits, Nikkei Asia reported Wednesday.

GIFT City is exempt from India's $7 billion industry-wide cap on combined overseas investments of all mutual funds, the report said.

The limit for funds outside GIFT City has been reached, forcing the investment arms of global funds like Schroders, J.P. Morgan, or HSBC to stop accepting fresh subscriptions. Therefore, they are turning to Gujarat's financial hub to push their funds, the report said.

A country-agnostic equity fund launched in GIFT City by DSP Asset Managers garnered nearly $30 million in subscriptions since its launch in June 2025 and expects inflows to cross $200 million in a couple of years, according to the report.

"It's not country specific but sector specific, with investors focusing on themes like AI, semiconductors and cloud computing," Nikkei quoted Jay Kothari, DSP's head of international business and lead investment strategist, as saying.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)