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TMI Blog(I) Scheme for Investment by Qualified Foreign Investors in equity shares (II) Scheme for Investment by Qualified Foreign Investors in Rupee Denominated Units of Domestic Mutual Funds – RevisionX X X X Extracts X X X X X X X X Extracts X X X X ..... 9, 2011 and A.P. (DIR Series) Circular No. 42 dated November 3, 2011 in terms of which Qualified Foreign Investors (QFIs as defined therein to mean non-resident investors, other than SEBI registered FIIs and SEBI registered FVCIs, who meet the KYC requirements of SEBI) are allowed to invest in rupee denominated units of domestic Mutual Funds subject to the terms and conditions mentioned therein. (I) Scheme for Investment by Qualified Foreign Investors in equity shares 2. It has now been decided to allow QFIs to purchase on repatriation basis equity shares of Indian companies subject the following terms and conditions : (i) Eligible instruments and eligible transactions QFIs shall be permitted to invest through SEBI registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign inward remittances through normal banking channels) failing which the funds would be immediately repatriated back to the QFI s designated overseas bank account. The sale proceeds of the equity shares will also be received in this single rupee pool bank account of the DP and shall be repatriated to the designated overseas bank account of the QFI within five working days (including the date of credit of funds to the single rupee pool bank account by way of sale of equity shares) of having been received in the single rupee pool bank account of the DP. Within these five working days, the sale proceeds of the existing investment can be also utilized for fresh purchases of equity shares under this scheme, if so instructed by the QFI. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment). (v) Eligibility - Only QFIs from jurisdictions which are FATF compliant and with which SEBI has signed MOUs under the IOSCO framework will be eligible to invest in equity shares under this scheme. (vi) KYC - DPs will ensure KYC of the QFIs as per the norms prescribed by SEBI. (vii) Permissible currencies - QFIs will remit foreign inward remittance through normal banking channel in any permitted currency (freely convertible) directly into single rupee pool bank account of the DP maintained with AD Category-I bank. (viii) Pricing The pricing of all eligible transactions and investment in all eligible instruments by QFIs under this scheme shall be in accordance with the relevant and applicable SEBI guidelines only. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngle rupee pool bank account they shall be remitted to the designated overseas bank accounts of the QFIs within five working days (including the day of credit of such funds to the single rupee pool bank account). Within these five working days, the dividend payments can be also utilized for fresh purchases of units of domestic mutual funds under this scheme, if so instructed by the QFI. 4. AD Category - I banks may bring the contents of the circular to the notice of their customers/constituents concerned. 5. Necessary amendments to Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated May 3, 2000) and Foreign Exchange Management (Depo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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