FOREIGNERS ALLOWED TO INVEST DIRECTLY IN EQUITIES
- Direct entry for foreign individual, association/group into Indian equity market.
- RBI will grant general permission under the Portfolio Investment Scheme route, similar to that for FIIs.
- Individual investment limit would be 5 per cent;aggregate limit would be 10% of paid-up equity of the company.
- These limits shall be over and above the FII and NRI investment ceilings.
- QFIs will be allowed to invest through Depository Participants (DP). Only one demat and trading account per QFI will be allowed.
- DP will be responsible for all KYC and other regulatory requirements.
- QFIs shall remit money through normal banking channels in any permitted currency (freely convertible) directly to the single rupee pool bank account of the DP.
- On receipt of instructions from QFI, DP will execute the sale/purchase.
- DP will be required to deduct tax, as and when required before making any payment to QFIS.
- Risk management, margins and taxation on such trades by QFIs may be on lines similar to the facility available to the other investors.
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