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Legal Outsourcing Legal Process Outsourcing Paralegal Outsourcing. Foreign Institutional Investors FII include the following foreign based categories:. Contact us for Registering Foreign Mutual Funds in India. Further, following entities proposing to invest on behalf of broad based funds, are also eligible to be registered as FIIs:. See also Foreign Hedge Funds in India. F oreign mutual funds are allowed to invest in India subject to special rules and regulations.

Before investing in stocks in India, foreign mutual funds are required to be registered in India. FII means an entity established or incorporated outside India which proposes to make investment in India. Sub-account includes those foreign corporations, foreign individuals, and institutions, funds or portfolios established or incorporated outside India on whose behalf investments are proposed to be made in India by a FII.

Designated Bank means any bank in India which has been authorized by the Reserve Bank of India to act as a banker to FII.

Domestic Custodian means any entity registered with SEBI to carry on the activity of providing custodial services in respect of securities. Provided that if the fund has institutional investor s it shall not be necessary for the fund to have twenty investors.

Asset Management Companies Institutional Portfolio Managers Trustees Power of Attorney Holders Q7. Which form needs to be filled in when applying for FII registration? Which documents need to be sent with "Form A"? Certified copy of relevant clauses clauses permitting the stated activities of Memorandum of Association, Article of Association or Article of Incorporation.

Audited financial statement and annual report for the last one year period covered should not be less than twelve months Q How much is the fee for registration as FII?

Demand Draft in favour of "Securities and Exchange Board of India" payable at New York. SEBI generally takes seven working days in granting FII registration. However, in cases where the information furnished by the applicants is incomplete, seven days shall be counted from the days when all necessary information sought, reaches SEBI.

In cases where the applicant is bank and subsidiary of a bank, SEBI seeks comments from the Reserve Bank of India RBI. In such cases, 7 working days would be counted from the day no objection is received from RBI.

Foreign Institutional Investors in India, FII, Foreign Mutual Funds Investing India, Investing in Shares in India, Stock Market Investing

The FII registration is valid for 5 years. After expiry of 5 years, the registration needs to be renewed. Same as initial registration. Along with "Form A" and all the relevant documents, the applicants are required to fill in additional form Annexure 1 while applying for renewal.

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Where the application for FII registration should be sent? Institution or funds or portfolios established outside India, whether incorporated or not. Proprietary fund of FII.

Foreign Corporates Foreign Individuals Q Who need to apply for sub-account registration? The FII should apply on the behalf of the Sub-account. Both platte livestock auction market FII and the Sub-account are required to nse trading timings today the Sub-account application form.

Which form needs to be filled when applying for sub-account registration? Demand Draft in the name of "Securities and Exchange Board of India" payable at New York. How many days it takes to get european asian call option pricing binomial tree sub-account registered?

SEBI generally takes three working days in granting FII registration. However, in cases where the information furnished by the applicants is incomplete, three days shall be counted from the days when all necessary information sought, reaches SEBI. What is the validity period of sub-account registration?

The validity of sub-account registration is co-terminus with the FII registration under which it is registered. It should also mention the reasons for the name change and give an undertaking that there has been no change in beneficiary ownership. In case of name change of FII, the request forex gold and silver trader be accompanied with documents from home regulator and registrar of the company evidencing approval of name change, and the original FII registration certificate issued by SEBI should be sent back for necessary amendment.

What is the procedure for transferring a sub-account from one FII to another? The FII to whom the Sub-account is proposed to be transferred has to send a request along with a declaration that it is authorized to invest on behalf of the Sub-account.

The transferor FII should also submit a No-objection certificate. What is the procedure for change of domestic custodian? The FII should send a request, along with no-objection certificate from existing domestic custodian, for change in domestic custodian. If it is not interested in renewal but has certain residual assets, it can apply for disinvestment in terms of Circular No. Which financial instruments are available for FII investments?

Securities in primary and secondary markets including shares, debentures and warrants of companies, unlisted, listed or to be listed on a recognized stock exchange in India; Units of mutual funds; Dated Government Securities; Derivatives traded on a recognized stock exchange; Commercial papers.

The FII investments in debt securities are governed by the policy if the Government of India.

Currently following limits are in effect:. For FII investments in Government debt, currently following limits are market share stock stock exchange tmx group What other investment limits are there?

In whose name should the securities be registered? What are the restrictions on investment in derivatives? The FII position limits in a derivative contracts Individual Stocks The FII position limits in a derivative contract on a particular underlying stock i. For stocks in which the market wide position limit is less than or equal to Rs. For stocks in which the market wide position limit is greater than Rs.

FII Position limits in Index options contracts. FII position limit in all index options contracts on a particular underlying index shall be Rs.

This limit would be applicable indian stock market and fii open positions in all option contracts on a particular underlying index. FII Position limits in Index futures contracts: FII position limit in all index futures contracts on a particular underlying index shall be Rs.

This limit would be applicable on open positions in all futures contracts on a particular underlying index. In addition to the above, FIIs shall indian stock market and fii exposure in equity index derivatives subject to the following limits: FII Position Limits in Interest rate derivative contracts At the level of the FII. The notional value of gross open position of a FII in exchange traded interest rate derivative contracts shall be:.

In addition to the above, the FII may take exposure in exchange traded in interest rate derivative contracts to the extent of the book value of their cash market exposure in Government Securities. At the level of the sub-account.

The position limits for a Sub-account in near month exchange traded interest rate derivative contracts shall be higher of:. Any individual or entity such as fund, trust, collective investment scheme, Investment Company or limited partnership whose investment advisory function is managed by an entity satisfying the criteria of abc or d above.

The report should reach SEBI by the 7th day of the following month. Jan-Mar, Apr-Jun, Jul-Sep and Oct-Dec: No reports required for that reporting quarter. How to send report on Participatory Notes? Instead the FII on behalf of its Sub-account should submit the undertaking prescribed in our circular No. Market regulator Security Exchange Board of India recently announced new rules for foreign investments through financial instruments such as participatory notes, asking FIIs to wind up P-Notes for investing in derivatives within 18 months.

SEBI also imposing curbs on P-Notes for investing in spot market. In derivatives, foreign institutional investors FIIs and their sub-accounts cannot issue fresh P-Notes and will have to wind up their current position in 18 months. In spot market, FIIs will not be allowed to issue P-Notes more than 40 per cent of their assets under custody. The reference date for calculating such assets will be September Those FIIs who have issued P-Notes of more than 40 per cent of their assets could issue such instruments only if they cancel, redeem, or close their existing PNs.

Those FIIs who have issued P-Notes less than 40 per cent of their assets under custody can issue additional instruments at the rate of 5 per cent of their assets.

P-Notes are instruments like contract notes issued by FIIs to overseas investors who cannot directly invest in equity market as they are not registered. Out of over 1, FIIs registered with SEBI, only 34 have been issuing PNs. Investing in Stocks in India Investing in Mutual Funds in India Foreign Institutional Investors in India FII Hedge Funds in India. Attorneys at law E-mail: Outsourcing Outsourcing to India Outsourcing Agreements Outsourcing Successfully Legal Outsourcing Joint Ventures Joint Venture Agreements International Joint Venture Agreements Joint Venture Successfully Joint Ventures in India Doing Business in India Procedure for Formation of Company in India Incorporating a Company in India Opening Branch in India Forming Subsidiary in India Entry Strategies in India for Foreign Investors Government Approvals for Foreign Investors in India FIPB Approval for Foreign Investment in India RBI Approvals for FDI in India FDI in India Sector wise Guide Registering Trademarks in India Registering Patent in India Tax Rates in India Process Serving in India Dispute Resolution Arbitration in India Litigation in India Dispute Resolution in India Arbitration in USA International Commercial Arbitration Drafting International Arbitration Agreements Contracts International Joint Venture Agreements Outsourcing Agreements CONTACT US.

Foreign Institutional Investors in India Foreign Mutual Funds Investing India, Foreign Hedge Funds in India, Foreign Institutional Investors in India, FII, Foreign Mutual Funds Investing India, Investing in Shares in India, Stock Market Investing, Foreign Institutional Investors registration under SEBI, Registering Foreign Mutual Funds in India.

Doing Business with India Free Guide. Investing in India Sector wise Guide. Trademark registering in India. Incorporating company in USA. Incorporating company in India. Real Estate in India. Patent registering in India. Corporate Compliance in India. Highlights of New Rules New norms to come into effect from tomorrow Unregulated pension fund, university fund, charitable fund, endowments etc to be treated as FIIs No dilution of know-your-customers norms for registration of FIIs to prevent money laundering FIIs to be registered on a permanent basis instead of earlier practice of renewing registration every three years.

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