INDIA: India Qualified Foreign Investors allowed to directly invest in Indian Equity Market

Friday January 6 2012

Further to update of 18 November, the Indian Central Government has decided to allow India Qualified Foreign Investors to directly invest in Indian equity market in order to widen the class of investors, attract more India foreign funds, and reduce market volatility and to deepen the Indian capital market. QFIs have been already permitted to have direct access to Indian Mutual Funds schemes pursuant to the Budget announcement 2011-12. Under the present arrangement relating to foreign portfolio investments, only FIIs/sub-accounts and NRIs are allowed to directly invest in Indian equity market. In this arrangement, a large number of India Qualified Foreign Investors, in particular, a large set of diversified individual foreign nationals who are desirous of investing in Indian equity market do not have direct access to Indian equity market. The new scheme has been introduced in order to remedy this situation.

he QFIs shall include individuals, groups or associations, resident in a foreign country which is compliant with FATF and that is a signatory to IOSCOs multilateral MoU. QFIs do not include FII/sub-accounts.

Click on the above link for more details.

Update of 18 November –

http://www.markets.funds-axis.com/newsArticle.asp?type=2&id=2419″