Scheme for Investment by Qualified Foreign Investors (QFIs) in Indian corporate debt securities.

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....in rupee denominated units of domestic Mutual Funds and listed equity shares and allowing SEBI registered FIIs to invest in to be listed debt securities subject to the terms and conditions mentioned therein. 2. It has now been decided to allow QFIs [hereinafter defined as per the revised definition in terms of para 2 (v) below] to purchase on repatriation basis debt securities subject to the following terms and conditions : (i) Eligible instruments and eligible transactions - QFIs shall be permitted to invest through SEBI registered Qualified Depository Participants (QDPs) (defined as per the extant SEBI regulations) in eligible corporate debt instruments, viz. listed Non-Convertible Debentures(NCDs), listed bonds of Indian companies, lis....

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....idend on the eligible securities for QFIs. (b). The funds in this account shall be utilized for purchase of eligible securities for QFIs or for remittance (net of taxes) outside India. (c). The DP will operate such non-interest bearing Rupee Accounts on behalf of the QFIs and at the instructions of the QFIs. A.P. (DIR Series) Circulars Nos. 8, 42 and 66 dated August 9, 2011, November 3, 2011 and January 13, 2012, respectively would therefore stand amended as above. Accordingly, it is clarified that henceforth there is no more requirement for opening and maintenance of a single rupee pool bank account by the QDP and QFIs can henceforth invest in all 'eligible securities for QFIs' through this single non- interest bearing Rupee Account. (....

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....person is not registered with SEBI as a Foreign Institutional Investor (FII) or Sub-Account of an FII or Foreign Venture Capital Investor (FVCI). Explanation - For the purposes of this clause : * "bilateral MoU with SEBI" shall mean a bilateral MoU between SEBI and the overseas regulator that, inter alia, provides for information sharing arrangements. * Member of FATF shall not mean an associate member of FATF. (vi) Know Your Customer (KYC) - QDPs will ensure KYC of the QFIs as per the norms prescribed by SEBI. AD Category-I banks will also ensure KYC of the QFIs for opening and maintenance of the single non- interest bearing Rupee accounts as per the extant norms. (vii) Permissible currencies - QFIs will remit foreign inward remitta....