Furtherance to the Central Government, vide press release dated January 1, 2012 has announced its decision to allow QFIs to directly invest in Indian equity, in order to widen the class of investors, attract more foreign funds, reduce market volatility and to deepen the Indian capital market, SEBI and RBI has issued circulars to streamline operation of the investment in equity markets by QFI's.
With checks on KYC and ultimate beneficial ownership issues, like for Mutual funds, regulators has opened an additional doors along with FII route. However, present step of Govt. of India and India regulator needs to be more refined and required comprehensive changes in other laws, to avid conflict between existing laws and QFI route regulations.
SEBI Circular: http://www.sebi.gov.in/cms/sebi_data/attachdocs/1326453304731.pdf
RBI Circular: http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/APD130112FS.pdf
With checks on KYC and ultimate beneficial ownership issues, like for Mutual funds, regulators has opened an additional doors along with FII route. However, present step of Govt. of India and India regulator needs to be more refined and required comprehensive changes in other laws, to avid conflict between existing laws and QFI route regulations.
SEBI Circular: http://www.sebi.gov.in/cms/sebi_data/attachdocs/1326453304731.pdf
RBI Circular: http://rbidocs.rbi.org.in/rdocs/Notification/PDFs/APD130112FS.pdf
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