Investment In India | "India's QFI draws GCC investors in equities "

By: MENAFN - Arab News
Source: http://www.menafn.com
Category: Investment In India

(MENAFN - Arab News) Qualified Foreign Investor (QFI), an investment channel opened by the government of India in the beginning of this year, offers nationals from 45 countries, including the UAE and other GCC countries, to invest in Indian equities and debt instruments.

This 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.

This was announced yesterday at an international seminar that was held at Dubai World Trade Center.

Indian financial and equity market experts who spoke on the occasion said that conservative estimates show that investments into Indian equities, bonds and mutual funds by foreign nationals under QFI route could cross the $ 10 billion mark in two years.

"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," said Sanjay Verma, consul general of India, while inaugurating the seminar, which had participants from over 14 nationalities. He also congratulated IBMC for launching the service.

Commenting on the rationale of holding the international seminar and the QFI regime, Hazza Mohammed Al-Dhaheri, chairman and MD, IBMC Group & JRG International, said 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 Hazza Mohammed Al-Dhaheri by S. Rengarajan, CEO, IL&FS Securities Services Ltd.

"I am happy to be the first Emarati with a QFI account," Hazza Al-Dhaheri told Arab News.

"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," said Sajith Kumar P.K., CEO and director, IBMC Group & JRG International while addressing a press conference on the sidelines of the seminar.

"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." Kumar added.

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 $ 12 billion so far including more than $ 1 billion in August this year alone.
QFI holds 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 Ashishkumar Chauhan, CEO Bombay Stock Exchange (BSE).

Speaking at the seminar, P.S. Reddy, CEO & MD, Central Depository Services (India) Ltd., said: "India's growth story is to continue in the 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 toward India as an investment destination."

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.

Source: http://www.menafn.com/menafn/1093552641/Indias-QFI-draws-GCC-investors-equities