Stock market regulator SEBI on Friday prescribed detailed guidelines for qualified foreign investors (QFIs) to directly invest in the Indian equity market. A QFI is a resident of a country compliant with the Financial Action Task Force (FATF) standards to combat money-laundering and terrorist financing. The country should also be a signatory to the International Organisation of Securities Commission's Multilateral Memorandum of Understanding, said SEBI. The QFI should not be an Indian resident or registered with SEBI as a foreign institutional investor or sub-account. QFIs meeting the Know Your Customer requirements have been allowed to invest in equities listed on Indian stock exchanges in a demat account opened with a SEBI-registered qualified Depository Participant (DP). SEBI has prescribed a set of parameters for a DP to qualify for doing business with QFIs. DPs with a minimum paid-up capital of Rs 50 crore, that are themselves a clearing bank or having membership of a clearing corporation are eligible.
Source: The Hindu Business line
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