360 ONE WAM-UBS India Deal: What Indian Investors Must Know
India’s wealth management space just saw a major move: 360 ONE WAM (formerly IIFL Wealth) is acquiring UBS India’s wealth business for ₹307 crore.
But what does this mean for high-net-worth individuals, tax professionals, and compliance advisors? Let’s decode the deal from a tax, legal, and financial lens.
Deal Snapshot
| Particulars | Details |
|---|---|
| Buyer | 360 ONE WAM Ltd. |
| Seller | UBS Wealth India |
| Deal Value | ₹307 crore |
| Mode | Slump sale of client assets and advisory team |
| Closure timeline | Expected within 3–4 months post-regulatory approval |
Why This Matters – Tax & Compliance View
Key tax insights from the 360 ONE WAM UBS deal:
- Slump Sale Structure:
The deal follows slump sale provisions under Section 50B of the Income Tax Act, 1961. This means UBS will be taxed on capital gains at a flat 22% (subject to applicable surcharge & cess), with no indexation benefit. - Transfer of Client Assets:
Transfer of high-value client portfolios may trigger reporting obligations under FEMA and SEBI if NRI accounts or cross-border holdings are involved. - GST Implications:
Under CBIC’s circulars on financial services, if the transaction includes back-office or AMC support, GST may apply on embedded services. - SEBI Approval Required:
All portfolio management and investment advisory activities are SEBI-regulated. The transfer of advisory books will need SEBI nod and client consent.
Strategic Move to Capture Ultra-HNI Market
“360 ONE WAM is building a dominant play in India’s wealth management scene. This acquisition gives them access to UBS’s elite clientele and top advisory talent—without building from scratch.”
— Senior Wealth Advisor, Mumbai
Regulatory Filings and Legal Compliance
- IT Act Reference: Section 50B – Slump Sale Capital Gains
- SEBI Regulation: Investment Advisers Regulation, 2013
- FEMA Implication: Transfer of NRI accounts may need RBI clearance
- Notification Link: RBI FEMA Guidelines
What Taxpayers & Consultants Should Watch
✅ Business restructuring under slump sale? Understand valuation and tax computation
✅ Transferring advisory businesses? Seek SEBI and client approvals
✅ GST on bundled services? Clarify scope as per CBIC’s guidelines
✅ Handling NRI portfolios? Ensure FEMA compliance