GIFT City in Gandhinagar, Gujarat, India, faced a significant setback when XED Executive Development withdrew its ₹110 crore (approximately $13.2 million USD) Initial Public Offering (IPO) due to insufficient bids. This withdrawal, the first from India's international finance centre, raises concerns about the viability of GIFT City as a hub for share listings. Lawyers and consultants point out that the withdrawal reflects broader issues with investor participation, particularly the challenges posed by Know Your Client (KYC) regulations. XED cited difficulties faced by investors in completing applications and a lack of institutional interest as reasons for the pullout. The current structure requires reliance on foreign portfolio investors, Non-Resident Indians (NRIs), and offshore funds, as retail investors have limited access to these offerings. The complexity of onboarding requirements, including PAN-linked KYC for non-residents, further complicates the process. Despite anticipated regulatory changes in 2025 and 2026, experts suggest that fundamental issues remain, particularly the prohibition on Indian residents investing in IPOs at GIFT City, which complicates the investment landscape and may deter future issuers.