Qualified Foreign Investments in India
A STUDY OF QUALIFIED
FOREIGN INVESTMENTS: THE
SYSTEM AND ITS BENEFITS TO
FOREIGN NATIONALS
By Saurav Mukhopadhyay,
Indian Institute of Management, Ranchi
A study of QFI: the system and its benefits to foreign Nationals
Table of Contents
1.
2.
3.
4.
5.
6.
7.
8.
1|Page
Key words and definitions
Executive Summary
Exhibits
Figures
Literature Review
Background of the issue in study
Analytical Interpretation
Suggestions and Conclusion
A study of QFI: the system and its benefits to foreign Nationals
1.Key words and Definitions
2.1
Authorised bank
2.2
Authorized Dealer
2.3
Authorized Person
2.4
Capital
2.5
Capital Account
Transaction
2.6
Company Controlled by
Indian residents
2.7
Depository Receipt
2.8
OCB
2|Page
“Authorized Bank‟ means a bank including a co-operative bank
(other than an authorized dealer) authorized by the Reserve
Bank to maintain an account of a person resident outside India.
“Authorized Dealer” means a person authorized as an authorized dealer under sub-section (1) of section 10 of FEMA.
“Authorized Person” means an authorized dealer, money changer, offshore banking unit or any other person for the time being authorized under Sub-section (a) of Section 10 of FEMA to deal in foreign exchange or foreign securities.
“Capital” means equity shares; fully, compulsorily & mandatorily convertible preference shares; fully, compulsorily
& mandatorily convertible debentures. (*Note: Warrants and partly paid shares can be issued to person/ (s) resident outside
India only after approval through the Government route).
“Capital account transaction” means a transaction which alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or assets or liabilities in India of person’s resident outside India, and includes transactions referred to in sub-section (3) of section 6 of
FEMA.
A company is considered
FOREIGN INVESTMENTS: THE
SYSTEM AND ITS BENEFITS TO
FOREIGN NATIONALS
By Saurav Mukhopadhyay,
Indian Institute of Management, Ranchi
A study of QFI: the system and its benefits to foreign Nationals
Table of Contents
1.
2.
3.
4.
5.
6.
7.
8.
1|Page
Key words and definitions
Executive Summary
Exhibits
Figures
Literature Review
Background of the issue in study
Analytical Interpretation
Suggestions and Conclusion
A study of QFI: the system and its benefits to foreign Nationals
1.Key words and Definitions
2.1
Authorised bank
2.2
Authorized Dealer
2.3
Authorized Person
2.4
Capital
2.5
Capital Account
Transaction
2.6
Company Controlled by
Indian residents
2.7
Depository Receipt
2.8
OCB
2|Page
“Authorized Bank‟ means a bank including a co-operative bank
(other than an authorized dealer) authorized by the Reserve
Bank to maintain an account of a person resident outside India.
“Authorized Dealer” means a person authorized as an authorized dealer under sub-section (1) of section 10 of FEMA.
“Authorized Person” means an authorized dealer, money changer, offshore banking unit or any other person for the time being authorized under Sub-section (a) of Section 10 of FEMA to deal in foreign exchange or foreign securities.
“Capital” means equity shares; fully, compulsorily & mandatorily convertible preference shares; fully, compulsorily
& mandatorily convertible debentures. (*Note: Warrants and partly paid shares can be issued to person/ (s) resident outside
India only after approval through the Government route).
“Capital account transaction” means a transaction which alters the assets or liabilities, including contingent liabilities, outside India of persons resident in India or assets or liabilities in India of person’s resident outside India, and includes transactions referred to in sub-section (3) of section 6 of
FEMA.
A company is considered