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.