Thursday, September 15, 2011

SEBI ALLOWS QFIs ENTRY IN MUTUAL FUNDS

A qualified foreign investor (QFI) is a person residing in a country (other than India) which is a signatory to IOSCO's multilateral MoU and is compliant with FATF standards. He should be registered with SEBI as a foreign institutional investor or a sub-account.

  • SEBI allows QFIs in Indian MFs
  • Aggregate investment can be up to $ 10 billion in equity schemes; $3 billion in debt schemes
  • QFISs can't avail facilities such as SIPs, withdrawals, transfer of units and switching between schemes
  • Foreign investors can only subscribe and redeem
  • MFs responsible for deduction of applicable tax at source before redemption payments.
  • DPs to open separate, single-rupee poll bank account only for QFI investments in India.
  • Foreign-based agent of MFs to be appointed after SEBI's approval.
  • MFs required to file details of subscription and redemption on a daily basis with SEBI.

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