Qualified Foreign investors are defined as having completed prescribed KYC norms and can invest directly up to 10% in any company according to latest allowances by india's securities regulator even as each individual investor cannot hold more than 5%
As usual the regulations are just technical gates opened, while investor interest has to be built up around the KYC norms required for registration. Other basic regulation that applies is unlikely to be in the way of investment ease for such QFIs as they have to poperate thru a single overseas bank account with FATF rule countries' banks signatories to "MMOU of IOSCO" Another thorn in the flesh of the QFIs thence is to get an Indian PAN card without which agencies are not expected to allow the Securities/DP account transactions
The 10% list will be managed thrua 8% cutoff list published to Securities Account managers. Exchanges are also expected to amend listing agreements/ maintain equity shareholidng lists incorporating the new class of investors and holdings
Though not demand led, the change in regulation atleast makes it possible to talk about indian investments outside of a special class of investments as it is more and more like dealing with a specific exchange than setting up elaborate labyrinth of accounts, brokers and fund managers thru a ban. However, as most India investment banks will have single window desks to enable Foreign investors to the jurisdiction, this may yet not compete with foreign investors pulled to gepgraphies or jurisdictions where each Dollar of investment counts for more celebration/direct impact to the investee
