Foreign Clients

On January 1,2012, the Government of India decided to allow Qualified Foreign Investors, or QFIs, to invest directly in the Indian equities market .

Last year, the government opened a new window for this class of investors to buy into Indian mutual funds directly. It has now gone one step further and allowed them to buy into stocks, too, just like registered Foreign Institutional Investors or Non Resident Indians( NRIs.)

Who are qualified foreign investors?

Qualified Foreign Investors, or QFIs, can be individuals, groups or associations based abroad who are allowed by the government to invest directly in mutual funds and stocks of Indian companies.

Qualified foreign investors will be distinct from Foreign Portfolio Investors and Non-Resident Indians. A QFI can, for instance, be a foreign individual investor in Africa or UAE, who can buy into stocks of a Reliance group company or HDFC or any other listed stock after fulfilling the ‘Know Your Customer’ norms through an Indian depository participant and obtaining the approval of the RBI.

QFIs can buy up to 5% of the paid-up capital of a company, with the overall limit capped at 10% in a company. And these investment limits are separate or over and above that for FIIs and NRIs.

To know more about this opportunity, please write to us at admin@wealthroutes.com