INDIA Trends and Developments Contributed by: Akshika Harikrishnan, Mohona Thakur and Nikhil Asrani, Khaitan & Co
The timing of pre-IPO trust structuring is also critical. Transfer of shareholding at least one year prior to filing the draft red herring prospectus (DRHP) provides flex - ibility to move a larger portion of the holding as part of the restructuring. Any restructuring between filing of the DRHP and red herring prospectus (RHP) limits the percentage of shareholding that can be transferred and may warrant revision of the DRHP and notifica - tion to SEBI. In the context of disclosing members of the promoter and promoter group in the DRHP, a trust is required to be disclosed. Amongst others, there is also a require - ment to disclose an immediate relative of the promoter as a part of the promoter group. “Immediate relative” includes spouse, children, siblings or parents of the promoter or the spouse, and any entity in which any such persons have more than 20% holding. In sce - narios involving estranged relatives or relatives who have ongoing disputes, they could often delay the IPO process with lack or refusal to provide consent. Man - aging complex family dynamics and having appro - priate family arrangements to avoid such scenarios becomes crucial for a seamless IPO listing. Investing overseas: building a global portfolio With value unlocking through fund raise or IPO, fami - lies are setting up family offices with dedicated invest - ment teams for managing investments. With a view to diversifying their portfolio and tapping into overseas opportunities, families are keen to invest beyond the current permissible liberalised remittance scheme (LRS) limit of USD250,000. With regulators halting approvals for family investment funds in GIFT City, families are evaluating the option of setting up their overseas family office through the overseas direct investment route by leveraging on operating entities and investing in financial services business, subject to the relevant conditions and limits. Singapore and Dubai continue to be the favoured jurisdictions with established family office ecosystems, stable envi - ronments, strong financial hubs and favourable tax regimes. There is also a new trend of Indians purchasing holi - day homes in London, Dubai and other exotic loca - tions. Succession of the overseas assets becomes critical and in case of immovable property succession
is lex situs. For Indians purchasing property in Dubai, local Islamic laws will apply if no Will is made for such property. Non-Muslims can make a DIFC Will ensuring that succession of assets will happen in accordance with DIFC free zone laws; ie, common law like India. In London, probate is required for immovable prop - erty and the registry will hold the original Will, which becomes a public record. Hence, a separate Will for overseas assets is advisable. This allows probate pro - ceedings in different countries to run simultaneously and prevents offshore authorities from accessing a list of Indian assets of the deceased and vice versa. Philanthropy: taking centre stage TIME unveiled the list of 100 Most Influential People in Philanthropy 2025 and four Indians featured in this list – Mukesh and Anita Ambani, Azim Premji and Nikhil Kamath. Traditionally, philanthropy was more informal, unstruc - tured and impulsive. Although nascent, giving back is now more proactive and becoming a significant part of a family business’ legacy. In the India Philanthropy Report 2025, family enterprises contributed INR18,000 crores (INR1 crore is INR10 million), through corporate social responsibility (CSR) initiatives. Family business - es are increasingly looking at philanthropy beyond the mandatory CSR and are setting up separate charitable institutions to make their giving more sustainable and long lasting, and are anchoring and supporting causes that are close to their value system. There is also a trend of family offices focusing on impact investing where financial investments and returns are coupled with social and environmental benefits, thereby blur - ring the lines between investing and philanthropy. Several promoters are echoing Warren Buffet’s phi - losophy, “Leave your children enough money so they can do anything, but not enough that they don’t have to do anything.” This is translating to families pledging a portion of their wealth or setting aside a percentage of their income for philanthropy. The authors are also observing an increase in the number of persons of Indian origin (PIO), overseas citizens of India (OCI) and non-resident Indians (NRIs) expressing a strong desire to give back to their alma maters or support causes in India through endow -
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