Qualified Foreign Investors: a new route for foreign investors into the Indian stock market

10 February 2012

On January 1, the Indian government’s New Year gift to the country’s stock markets was to allow Qualified Foreign Investors (QFIs) to invest directly in the equity markets to widen the class of the investors, attract more foreign funds, reduce market volatility and deepen the Indian capital market.

This will provide foreign investors with the opportunity to access the previously restricted Indian stock markets. Until now, QFIs were allowed to invest in equity and debt schemes of Indian mutual funds and only Foreign Institutional Investors and/or their sub accounts and Non-Residents Indians were allowed to invest directly in Indian equity markets.

Qualified Foreign Investors (270 kb)

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