Global meet explores QFI investment in Indian markets

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The potential for foreign investors to invest in the Indian stock markets through QFI, which is expected to bring in over USD 10 billion within the next two years, was discussed at a first-of-its kind global meet here.

QFI (Qualified Foreign Investor) route enables foreign nationals to invest directly in the Indian market and was opened by the government last year.

In a Global Ambassadors Meet organised by IBMC Financial Professionals Group, experts of Indian capital market discussed its potential with representatives from major QFI permitted countries.

"QFI hold a lot of potential for Indian markets. There is keen global interest in the resilience of our economy. Traditionally driven by FIIs and NRIs, foreign capital inflows have gained significant importance and impact local market sentiments," said Ashishkumar Chauhan, CEO of Bombay Stock Exchange (BSE).

He added that this would make the capital flow base broader and further deepen liquidity for Indian markets.

Residents of 52 countries are currently eligible to be Qualified Foreign Individual Investors. QFIs can buy up to 5 per cent of the paid-up capital of a company, with the overall limit capped at 10 per cent in a company.

Earlier, only pension funds and similar entities were allowed direct access to India’s bourses.

"India needs huge foreign investment support and maintain its growth," said Cyrus Khambata, Executive Vice President, Central Depository Services (India) Ltd., India.

"The finance ministry has taken proactive steps to encourage investments by foreigners into Indian capital markets by simplifying procedures for invests by foreign institutions as well as individuals by introducing the QFI route for such investors," he added.

IBMC and the BSE Institute Ltd also announced joining hands to open IBMC Knowledge Centre which will soon start offering courses about investing in stock markets to facilitate foreign nationals tap the Indian capital markets.

"We have already set centralised infrastructure in UAE to provide professional QFI service to the investors located in UAE and other GCC Countries" said Sajith Kumar P K, CEO & Director, IBMC Financial Professionals Group.

"In the first phase we will cover GCC Countries, US, UK and Canada. Second phase will include North-African continent and rest will be covered in the third phase," he added.

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