RBI issues Directions for QFI Investments in Indian Companies and Single-Brand Retail Trading

RBI issues Directions for QFI Investments in Indian Companies and Single-Brand Retail Trading

Related Notification

The Reserve Bank of India today issued detailed guidelines enabling Qualified Foreign Investors (QFIs) investments in Indian companies. The guidelines have been issued under Foreign Exchange Management Act, 1999.

It was decided to allow Qualified Foreign Investors (QFIs), that is, non-resident investors other than SEBI registered foreign institutional investors (FIIs) and foreign venture capital investors (FVCIs) to invest in equity shares of Indian companies in order to widen the non-resident investor base in the Indian stock markets as well as to expand the set of non-resident portfolio investors in India.

It also issued directions permitting foreign direct investments (FDI) up to 100 per cent in single brand product trading under the Government route subject to stipulated terms and conditions. This came in the wake of the Government reviewing the FDI policy and allowing 100 per cent FDI in single brand retail product trading (Press Note No. 1 (2012 Series) dated January 10, 2012 issued by Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Government of India).

Alpana Killawala

Chief General Manager