QFI, the new investment channel opened up by the Government of India in the beginning of this year allows foreign nationals from 45 countries from across the world, including the UAE, to invest in Indian equities and debt instruments. The move is widely believed to have the potential to attract billions of dollars into India, which is currently among the world’s top three investment destinations.
Launching the QFI service during a first-of-its-kind international seminar at the World Trade Centre, Dubai in the august presence of H.E Mr. Sanjay Verma, Consul General of India, Mr. Sajith Kumar P K, CEO & Director, IBMC Group & JRG International, said, “The new investment route provides direct access to the Indian equity and debt markets for foreign nationals, groups or associations, allowing a wider global investor base to partake the benefits of the Indian growth story.”
“The UAE and India share extensive trade and commercial bonds. They are also each other’s biggest trade partners. The UAE being a regional trade and investment hub is an ideal location to promote this new initiative,” Mr. Verma said, congratulating IBMC for launching the service and inaugurating the seminar which was attended by an audience of over 15 nationalities.
Commenting on the rationale of holding the international seminar and the QFI regime, H.E. Hazza Mohammed Al Dhaheri, Chairman & MD, IBMC Group & JRG International, said that Dubai, being the business hub of the region offered a vantage point to launch the service.
The event also marked awarding the first QFI Account to H.E. Hazza Mohammed Al Dhaheri by Mr. S. Rengarajan, CEO, IL&FS Securities Services Ltd.
“Foreign investments into Indian stocks and debt instruments were earlier limited to pension funds and FIIS (Foreign Institutional Investors) and the new regime opens up a path breaking alternative to global investors,” Mr. Sajith Kumar said.
He said QFI has the potential to match or even overtake the current volume of FII investment volumes into the Indian markets in the next two to three years. Overseas investments into Indian stock markets in 2012 has touched $12bn so far including more than $1bn in August this year alone.
“QFI hold a lot of potential for Indian markets. There is keen global interest in the resilience of our economy. Traditionally driven by FIIs and NRIs, foreign capital inflows have gained significant importance and impact local market sentiments. QFIs would broad-base the capital flow and further deepen liquidity for Indian markets,” said Mr. Ashishkumar Chauhan, CEO Bombay Stock Exchange (BSE).
Speaking at the seminar, Mr. P. S Reddy, CEO & MD, Central Depository Services (India) Limited, said, “India’s growth story is to continue for next few decades. It needs huge investment support both from internal and external sources. QFI route is opened up for those who want to have the benefit of India’s growth. There is no better region than Gulf region which is more inclined towards India as an investment destination.”
Mr. Rangarajan of ILFS said they are glad to be offering QDP services to QFIs in the Middle East through the IBMC Group. “We are sure that the professional competence and service oriented approach of ISSL & other institutions involved would definitely make investments in India through QFI route a pleasant experience,” he added.
The event also marked the introduction of The Best International Financial Professional Award by IBMC group designed to recognize and encourage outstanding industry Leaders for their contributions benefiting global investors. The 2012 awards were presented to Mr. Ashishkumar Chauhan, Mr. P. S Reddy and Mr. S. Rengarajan.
As part of spreading the QFI message to a wider audience, IBMC Group also signed MoUs with the compliance entity, Allied Compliance Consultants (ACC) and the CEO Club, which functions under the patronage of HH Sheikh Juma Bin Maktoum Juma Al Maktoum.
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