FOREIGNERS ALLOWED TO INVEST IN MUTUAL FUNDS
Framework of the Direct Route for Investing
the investor's instruction
The depository issues UCRs against underlying units
to foreign non-institutional investors
UCRs can be surrendered for cash with the depository
- A foreign investor opens a Demate account in India
- Place an order to buy MF units directly on the depository participant
- Remits money directly to DP, which is mandated to report to the custodian on the daily basis
- MF deposits the units according to investor's instructions in the demat account
- MF units can be sold foreign exchange remitted by the MF to the DP
Framework of unit confirmation receipt (UCR) system
- A foreign Investor goes to an overseas depository and hands over foreign currency
- Place an order with the depository to buy units of
- India n MFs
- The depository receives cash and remits to the
- costodian bank in India , which buy the MF units to
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