Wednesday, April 16, 2014

Investment under New Foreign Portfolio Investment (FPI) Scheme, Govt. and Corporate debt


  • A new ‘Foreign Portfolio Investment’ Scheme for Foreign Institutional Investors (FIIs) & Qualified Foreign Investors (QFIs) has been registered in accordance with SEBI guidelines.
  • The scheme commences w.e.f. June 1, 2014.
  • Registered Foreign Portfolio Investor (RFPI) may purchase and sell shares and convertible debentures
  • The individual and aggregate investment limits for the RFPIs shall be below 10% or 24% respectively of the total paid-up equity capital or 10% or 24% respectively of the paid-up value of each series of convertible debentures issued by an Indian company. Further, where there is composite sectoral cap under FDI policy, these limits for RFPI investment shall also be within such overall FDI sectoral caps.
  • RFPI shall be eligible to open a Special Non- esident Rupee (SNRR) account and a foreign currency account with Authorised Dealer bank
  • RFPI can invest in government securities and corporate debt, and also trade in exchange traded derivative contracts

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