First Investment via QFI Route worth $ 5m

India received its first investment via the QFI (Qualified Framework Investor) route, thus ending speculations that the India’s efforts to get investors to buy shares directly will be on the fritz. Kotak Mahindra Bank struck a deal worth $5 million, following which India received its first investment via the QFI route. T

The strategy to pull investment via the QIF route is anticipated to draw in investment worth about $30 billion in 2012-13 period, thereby assisting the country fund a chunk of the CAD (Current Account Deficit) pegged at 4.2% of GDP in 2011-12.

The finance ministry had in the recent past conducted road shows in 5 countries in the Gulf region- Bahrain, Dubai, Kuwait, Muscat and Riyadh – to protrude India as the incredible investment destination for wealthy investors.

Who is a Qualified Foreign Investor (QFI)?

• A QFI is a person or a trust resident in a country which is a member of the Financial Action Task Force (FATF) can invest directly in India.

What is the Investment Regime for QFI (QFI)?

• QFIs have been allowed to invest in all the 3 segments of the Indian Capital Market viz.-

1. Corporate Debt
2. Equity
3. Mutual Funds (MFs)

Why is Indian Government promoting QFI route?

• The Indian Govt feels that the wealthy investors should be boosted to invest directly so that the stable in-flows could fund the CAD (Current Account Deficit).

Month: Current Affairs - July, 2012