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.