Posts Tagged ‘government’
the government allowed qualified foreign investors (QFIs, Qualified Foreign Investors) the purchase of units to 3,000 million dollars in debt funds for infrastructure opening, thus, another window for the entry of foreign capital .
At the same time, the government has implemented regulations for such investors to directly buy equity based investment funds, whose limit is set at 10,000 million dollars, fulfilling a promise made in the budget this year.
The maximum debt that can take QFIs is 25,000 million dollars, including foreign institutional investors (FII). So far, only allowed to FII and Indians living abroad to purchase units in national investment funds.
The regulator of the securities markets (SEBI, Securities and Exchange Board of India) stated that, once the accumulated capital investment under the program QFI reach 8,000 million dollars, the remaining quantities will be auctioned to foreign investors who may acquire shares of the funds of your choice. A similar process is followed when the investments in debt reached 2,500 million dollars.
Foreign investors, including individuals, pension funds and trusts may invest directly in these debt funds by opening an escrow account regulated by SEBI, or indirectly through confirmation receipts, a system similar to that used to invest in actions.
However, investors should come from a country that complies with rules issued by the Financial Action Task Force.
The Ministry of Finance will also issue the PAN to investors in accordance with standards KYC (know your customer), to simplify the process. PAN is an identification code that is required in all financial transactions.
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