Equity investments
Below are permissible transactions for QFIs investing in India
- Purchase of Indian equity shares in public issues, to be listed on recognised stock exchange(s).
- Purchase of listed equity shares through SEBI registered stock brokers, on recognized stock exchanges in India.
- Sale of equity shares which are held in their demat account through SEBI registered stock brokers.
- Subscription of equity shares against rights issues.
- Receipt of bonus shares or receipt of shares on stock split/consolidation.
- Receipt of equity shares due to amalgamation, demerger or such other corporate actions, subject to the investment limits.
- Purchase/subscription of Indian mutual fund units through demat account mode (Direct Route) and unit confirmation receipt (Indirect Route).
- Redemption of mutual fund units purchased/subscribed through direct and indirect route.
- Receipt of dividends and interest payments.
- Tender equity shares in an open offer in accordance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
- Tender equity shares in an open offer in accordance with SEBI (Delisting of Equity Shares) Regulations, 2009.
- Tender equity shares in case of buy-back by listed companies in accordance with SEBI (Buyback of Securities) Regulations, 1998
Debt investments
QFI transactions shall be limited to the following debt securities:
- Purchase and sale of corporate debt securities listed on recognized stock exchange(s)
- Purchase of corporate debt securities through public issues, if the listing on recognized stock exchange(s) is committed to be done as per the extant provisions of the Indian Companies Act, 1956
- Sale of corporate debt securities by way of buyback or redemption by the issuer
- Purchase and sale of units of debt schemes of Indian mutual funds.
- Investments in mutual fund schemes which invest in infrastructure debt
Mutual Funds (MF) Investments
- QFIs can also invest in the equity and debt schemes of Indian Mutual Funds.
The aforesaid investments in equity, debt and mutual funds by the QFI are subject to certain limits and restrictions imposed by the RBI and SEBI.