WE OFFER FOLLOWING SERVICES TO OUR ESTEEMED CLIENTS:
India is one of the fastest growing economies in the world with a young demographic profile and innovative minds at work. Having made considerable progress in the last decade owing to a series of Economic reforms such as deregulations, opening of Indian markets for foreign investors, etc. India has become a favorite amongst the global investing community. Foreign Portfolio Investors (FPI’s) should not miss this golden opportunity to invest in India. At Investmentz.com, we enable our esteemed Foreign Portfolio Investors (FPI’s) to take advantage of India’s Economic growth by investing in the Indian Equity as well as Debt markets.
India is one of the fastest growing economies in the world with a young demographic profile and innovative minds at work. Having made considerable progress in the last decade owing to a series of Economic reforms such as deregulations, opening of Indian markets for foreign investors, etc. India has become a favorite amongst the global investing community. Foreign Portfolio Investors (FPI’s) should not miss this golden opportunity to invest in India. At Investmentz.com, we enable our esteemed Foreign Portfolio Investors (FPI’s) to take advantage of India’s Economic growth by investing in the Indian Equity as well as Debt markets.
WHO IS A FOREIGN PORTFOLIO INVESTOR (FPI)?
An FPI means a person who satisfies the prescribed eligibility criteria and has been registered under the SEBI(Foreign Portfolio Investors) Regulations, 2014. All existing Foreign Institutional Investors (FIIs ) and Qualified Foreign Investors (QFIs), holding a valid certification of Registration are deemed to be FPIs, till the expiry of the block of three years for which they have paid fees as per the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995.
ELIGIBILITY CRITERIA
The Applicant:
- Should not be a person resident in India
- Should be a resident of a country which is a signatory to bilateral Memorandum of Understanding with SEBI or should be a resident of a country whose securities market regulator is a signatory to International Organisation of Securities Commission’s Multilateral Memorandum of Understanding
- Should not be resident of a country identified in the public statement of Financial Action Task Force ( FATF) as
a) A jurisdiction having a strategic Anti-Money Laundering or Combating the Financing of Terrorism deficiencies to which counter measures apply, or
b) a jurisdiction that has not made sufficient progress in addressing the deficiencies or has not committed to an action plan developed with the FATF to address the deficiencies
- If the applicant is a Bank, it should be resident of a country whose Central Bank is a member of the Bank for International Settlements (BIS)
- Should not be a Non Resident Indian (NRI)
- Should be legally permitted to invest in Securities outside his country
- In case of a corporate, trust, etc (i.e any person which is not an individual) should be authorized by its Memorandum of Association (MOA) & Articles of Association (AoA), or equivalent document
- Should have sufficient experience, good track record, be professionally competent, be financially sound, and generally good reputation of fairness and integrity.
- Should not have a “opaque” structure (protected / segregated cell company or similar where ultimate Beneficial owners are ring fenced from each another)
- Should be a fit and proper person based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008.
CATEGORIES OF FPI’S:
CATEGORY 1
- Government and Government related foreign investors such as Foreign Central Banks, Governmental Agencies, Sovereign Wealth Funds
- International/ Multilateral Organizations/ Agencies
CATEGORY 2
- Regulated broad based funds such as Mutual Funds, Investment Trusts, Insurance International/ Multilateral Organizations/ Agencies
- Regulated entities such as Banks, Asset Management Companies, Investment Managers/Advisors, Portfolio Managers etc.
- Broad based funds whose investment manager is appropriately regulated
- University Funds and Pension Funds
CATEGORY 3
- All other eligible foreign investors not eligible under Category I and II such as Endowments, Charitable Societies/Trust, Foundations
- Corporate Bodies
- Trusts
- Individuals
- Family Offices
Broad Based Fund” implies established or incorporated outside India, having at least 20 investors, with no investor holding > 49% shares or units of the fund.
In case of an Institutional Investor holding more than 49%, then this investor must itself be a Broad Based Fund
For ascertaining number of investors, both Direct and underlying Investors to be considered
Only investors of entities set up for the sole purpose of pooling funds and making investments shall be considered for the purpose of determining underlying investors.
FPI REGIME FEATURES
PROCESS FLOW
Step 1: Apply to a Designated Depository Participant for registration
- Appoint your DDP/ Custodian
- Submit Form “A” and KYC Form along with supporting documents to your DDP
- Register as Foreign Portfolio Investor (FPI)
Step 2: Obtain Tax Registrations
- Appoint CPA
- Submit requisite forms and supporting documents
Step 3: Open Bank Accounts in India
- Open Rupee Bank account with a designated bank
- Submit requisite forms and supporting documents
Step 4: DDP opens Custody & Depository Accounts; Obtains UCC & CP Code from Exchanges
Step 5: Open Trading Account with your Broker
- Appoint ACMIIL as Broker
- Submit requisite forms and supporting documents for Registration
- For making Investments in India
- Remitting Funds from Overseas Bank Account to Bank Account opened in India
- Place Orders with Broker, ACMIIL
#All the formalities regarding Account Opening will be completed by the DDP/custodian
KYC REQUIREMENTS
# Natural person or persons who ultimately own, control or influence a client and / or persons on whose behalf a transaction is being conducted. It also includes those persons who exercise ultimate effective control over a legal person or arrangement (>25% in case of Companies & > 15% in case of other entities)
For PAN card application: In case of non-individual entities, the certificate of incorporation must be attested from Indian Embassy. Rest all supporting documents are to be notarized / attested by Banks
Advantages of opening account with Investmentz.com:
Wide participation across segments like Equity, Debt, Currency as well as Mutual Funds
Efficient Trade Execution with minimal impact cost
Tailored products for International investors – FPI
Wide range of investment options available under one roof, eligible for FPIs
Personalized solutions and service taking your needs into consideration. Investmentz.com strives to give investors a better investing experience with an array of investment products and services
Dedicated Relationship Managers to assist you with all your investment needs
Web access for your Accounts services on 24 x 7 basis
PRODUCTS AVAILABLE FOR INVESTMENT BY FPIS
EQUITY
- Shares, Debentures and Warrants, listed or to be listed (both Primary / Secondary)
- Units of domestic Mutual Fund Schemes, whether listed or not
- Units of schemes floated by a Collective Investment Scheme
- Derivatives traded on a recognized Stock Exchange
- Indian Depository Receipts (IDRs)
- Other instruments as permitted from time to time
DEBT
- Dated Government Securities
- Commercial Papers issued by an Indian Company
- Rupee denominated Credit Enhanced Bonds
- Security Receipts issued by Asset Reconstruction Companies
- Perpetual Debt instruments and debt capital instruments, as specified by RBI from time to time
- Non-Convertible Debentures / Bonds issued by an Indian Company in the infrastructure Sector
- Non-Convertible Debentures / Bonds issued by NBFCs categorized as Infrastructure Finance Company’ by RBI
- Rupee denominated bonds or units issued by Infrastructure Debt Funds
- Such other instruments specified by SEBI from time to time
DERIVATIVES
- Equity Futures & Options
- Interest Rate Futures & Options
- Currency Futures & Options
ELIGIBILITY CRITERIA
- Process Flow to register as an FPI
- KYC Requirements
- FPI Regime Feature
rajat.vohra@acm.co.in