Who is Qualified Foreign Investors (QFI)?
In brief, QFIs shall include individuals, groups or associations, Resident in a country that is a member of Financial Action Task Force (FATF) or a country that is a member of a group which is a member of FATF and resident in a country that is a signatory to IOSCO’s MMOU (Appendix A Signatories) or a signatory of a bilateral MOU with Securities and Exchange Board of India (SEBI). QFIs do not include FIIs/Sub accounts/ Foreign Venture Capital Investor. The definition of QFI is available at following lin
Can a Non Resident Indians (NRI) make investments by opening a demat account through QFI Route
An NRI cannot make investments simultaneously through the QFI route and portfolio investment scheme (PIS) route. However, a NRI can open demat account as QFI and make investments through this route provided he has closed all his demat account(s) opened as an NRI.
Is there any cap on the maximum shareholding limit by QFI?
Yes. The total shareholding by a QFI cannot exceed five percent of the paid up equity capital of any company at any point of time. This limit shall be applicable to each class of equity shares having separate and distinct ISIN. Further, the aggregate shareholding of all QFIs shall not exceed ten percent of the paid up equity capital of the company at any point of time, in respect of each equity share class having separate and distinct ISIN.
How does QFI invest in MF under Direct route?
QFI has to first remit the funds to its single non-interest bearing rupee account and then place the order through the QDP by providing details of the investment.The details are available at:
Can QFIs open bank account in India?
Yes. A QFI may open a single non-interest bearing Rupee account with an AD Category –I bank in India subject to terms and conditions specified under FEMA, 1999 from time to time. The QDP shall operate this single non-interest bearing Rupee account for all investments made by QFI in India.
Is the investment through the QFI route freely repatriable?
Yes. The investment made through the QFI route is freely repatriable, subject payment of applicable taxes