Reuters|
1/5
Rising Popularity
ANI
2/5
Foreign Portfolio Investments
ETMarkets.com
3/5
Disclosures
Custodians are typically domestic banks or Indian branches of foreign banks. There are a total of 17 custodian banks registered in India including – Citi Bank, Deutsche Bank, ICICI Bank, Kotak Mahindra Bank, DBS Bank, HSBC, State Bank of India , Standard Chartered Bank among others, according to SEBI website.
Under India’s anti-money-laundering rules, regulators also require details of the so-called beneficial owners, which refers to any investor holding 10% or more of the assets of a fund.
Further, SEBI has enhanced disclosure requirements for funds which have concentrated holdings in a single corporate group.
ETMarkets.com
4/5
Non-resident Investments
NRIs cannot engage in intra-day trading, they have to take delivery of shares and can’t trade derivatives.
ETMarkets.com
5/5
Offshore Derivatives
Taking a short position in India requires upfront disclosures, but investors can do so via P-notes to obscure their positions.
Foreigners can also invest in the roughly 150 American and Global Depository Receipts (ADRs/GDRs) of Indian firms listed on offshore exchanges. In recent years, the number of companies raising funds via ADR/GDR has reduced.
ETMarkets.com