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WHY INVEST IN INDIA

  • STRONG ECONOMY GROWTH
    • Impressive GDP growth rate GDP rate
    • Expected to increase by 8% - 9% per annum for next 10 years
    • Huge scope for the growth of Economic with government support
  • STABLE AND VIBRANT DEMOCRACY
    • Stable government with a single party majority after 30 years
    • Largest democratic country in the world
    • Remarkable continuity in the direction of favorable FDI investment policy
    • Highest FDI inflow of USD 31 billion in first half of 2015, leaving behind China and US
  • FAVORABLE DEMOGRAPHICS
    • More than 65% of population below 35 years
    • India expected to register largest addition to the working population by 2020
    • The large young population to support consumption and therefore economic growth
  • HUGE CONSUMPTION POWER
    • 3rd largest economy based on Purchasing Power Parity (PPP)
    • Purchasing Power Parity has crossed key threshold of USD 3000 in 2010
    • FDI inflow increase by 33.5% registered in India for FY 2014-2015
  • GROWING EQUITY MARKET
    • One of the most impressive Foreign Direct Investment destinations in the world
    • Stable INR when compared to other global currencies vis-à-vis USD
    • Rated as the most attractive destination for offshore business processing by global consultancy A.T. Kearney
    • Vibrant capital market (NSE, BSE)

TYPES OF INVESTMENTS ALLOWED

WHY SMC?

    • We will help the client in opening a Custodian Account with our empanelled Custodian.
    • We help the client in setting up a Bank Account and finalizing on his Tax Consultant.
    • We ensure quick turnaround from all tie-up partners.
    • We help ascertain eligibility of investor and in meeting documentation requirements.
    • We coordinate with client for all documentation requirements.
    • We provide customized services with requisite flexibility.
    • Our clients benefit from:

      Experienced and known tie-up partners
      Pedigree - A comforting factor for clients
      Risk Mitigation - Separate & distinct entities for various services
  • workforce of
    3000+
    employees
  • Presence in
    550+
    cities across India
  • 65
    branches
    including in Dubai, New York,
    Orlando and Atlanta
  • Large network of
    2,400+
    Sub brokers & authorized
    persons
Figures as on 31st Dec 2015

Our Offerings

  • Broking
    Equities and Derivatives
  • WEALTH MANAGEMENT
    Providing client specific Portfolio & Wealth Management Services
  • DISTRIBUTION
    Distribution of IPOs & Mutual Funds, Fund Mobilization through distribution of Debt Instruments, Corporate FixedDeposits
  • DGCX TRADING
    Trading on DGCX in currency and metals like gold and silver through our subsidiary SMC Comex in Dubai
  • INVESTMENT BANKING
    Private Equity, M&A, Corporate Advisory, debt syndication, FCCB, IPO, FPO, rights issue
  • INSTITUTIONAL DESK
    Institutional Trading and Advisory Services
  • DEPOSITORY SERVICES
    Depository Services for both Equities & Commodities
  • INTERNATIONAL TRADING
    Trading in 33 of the world's exchanges in partnership with Saxo Bank, Denmark

WHO IS AN FPI?

  • FPI (FOREIGN PORTFOLIO INVESTOR)?
    • A unified market access route for all portfolio investments in India
    • Proposal by SEBI committee – convergence of all portfolio investment routes, including FII, Sub Account and QFI
    • Simplified entry norms - No registration requirement with SEBI
    • FPIs to register with Designated Depository Participants (DDPs) – AD Bank Custodian – who will be responsible for due diligence
    • FPI is a resident in a country other than India, whose securities market regulator is a signatory to IOSCO's MMOU (Appendix A Signatories) or a signatory to a bilateral MOU with SEBI. In case of a Bank, it should be resident of a country whose central bank is a member of the Bank for International Settlements (BIS).
    • The person should not be resident in a country listed in the public statements issued by FATF (high risk and non-compliant countries) from time to time on -
    • a. Jurisdictions having a strategic Anti-Money Laundering / Combating the Financing of Terrorism (AML/CFT) deficiencies to which counter measures apply or
    • b. Jurisdictions that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies

ELIGIBILITY

    • Is a person not residing in India
    • Is a resident of a country which is a signatory to SEBI MoU/IOSCO’s MoU
    • Is resident of a country meeting FATF requirements
    • If a Bank, should be resident of a country whose Central Bank is a member of the Bank for International Settlements
    • Is not a Non Resident Indian (NRI)
    • Is legally permitted to invest in Securities outside his country
    • Is authorized by its MoA & AoA (or equivalent document)
    • Has sufficient experience, good track record, is professionally competent, financially sound, generally good reputation of fairness and integrity
    • Does not have an “opaque” structure (protected / segregated cell company or similar where ultimate beneficial owners are ring-fenced from each another)

CLASSIFICATION

FPIs are classified into three main categories based on type of entities and risk profiles.
  • Category I
    • Regulated entities: Banks, AMCs, investment managers/ advisors, portfolio managers
    • Regulated broad based funds such as mutual funds, investment trusts, insurance / reinsurance companies
    • Broad based funds whose investment manager is appropriately regulated
    • University funds, pension funds
    • University related endowments already registered with SEBI
  • Category II
    • Government and related entities such as foreign central banks, government agencies, SWFs, multilateral organizations etc.
  • Category III
    • All other investors not eligible in Category I and II. Examples include non-broad based funds, endowments, charitable societies/trust, foundations, corporate, trusts, individuals, family offices, etc.

KYC DOCUMENTS

  • Individuals
    • Proof of Identity (Passport mandatory)
    • Proof of Address
    • Bank Proof
    • Bank Letter
    • PAN
  • Non-Individuals
    • Constitutive Documents (MoA, Trust Deed, Partnership Deed)
    • Certificate of Incorporation
    • Regulatory Affiliation details
    • Proof of Address
    • Bank Account details
    • Bank Letter stating satisfactory relationship (Cat III only)
    • Board Resolution stating that entity is allowed to invest
    • Shareholding details and Ultimate Beneficiaries’ details
    • Financials
    • Senior Management Credentials/ Photo
    • Authorized Signatories details
    • PAN

Registration Flow Process

PROCESS AND FEES - CUSTODY PROCESS

FAQ's

  • +
    1.   What is the definition of broad based fund?
    Broad based fund is a fund, established or incorporated outside India, which has at least twenty investors, with no investor holding more than forty-nine per cent of the shares or units of the fund: If the fund has an institutional investor who holds more than 49% of the shares or units in the fund, then such institutional investor must itself be a broad based fund for the fund to meet the broad based criteria. For ascertaining the number of investors in a fund, direct investors as well as underlying investors shall be considered. However, only investors of entities which have been set up for the sole purpose of pooling funds and making investments shall be considered for the purpose of determining underlying investors
  • +
    2.   What is the status of registration for existing FIIs and sub-accounts?
    All existing FIIs and sub accounts can continue to buy, sell or otherwise deal in securities under these regulations till the validity of their existing registration or upon payment of a conversion fee of USD 1,000 to convert from FII / Sub Account to FPI status, whichever is earlier. The application must be made as per Form A as provided in the regulations and must be accompanied by supporting documents, as prescribed by the regulations or by SEBI from time to time
  • +
    3.   Can a newly incorporated/established fund seeking to register itself as a broad based fund under Category II, but does not satisfy the broad based criteria at the time of
          making application, be granted registration?
    Yes. If the applicant is newly incorporated/ established seeking to register itself as a broad based fund under Category II, but does not satisfy the broad based criteria at the time of making application, the DDP may consider grant of conditional registration, with validity period of 180 days to such applicant if: a) The applicant is an India dedicated fund or undertakes to make investment of at least 5% corpus of the fund in India b) The applicant undertakes to comply with the broad based criteria within 180 days
  • +
    4.   How does the applicant confirm compliance with the broad base requirement?
    For the DDP to assess compliance with the broad based criteria, the FPI must provide details of investors to the DDP who will perform appropriate due-diligence and issue an acknowledgement regarding fulfillment of broad based criteria, if it is satisfied. With this acknowledgement, the conditional registration shall be treated as registration, henceforth. If the FPI fails to satisfy the DDP that it has attained broad based status within 180 days, it shall be reclassified as category III. SEBI has further clarified that if an existing broad based fund registered as Category II FPI, ceases to remain broad based on account of redemption etc., the applicant would be required to attain broad based status within 180 days and the same procedure outlined above will be followed.
  • +
    5.   How does the applicant confirm compliance with the broad base requirement?
    For the DDP to assess compliance with the broad based criteria, the FPI must provide details of investors to the DDP who will perform appropriate due-diligence and issue an acknowledgement regarding fulfillment of broad based criteria, if it is satisfied. With this acknowledgement, the conditional registration shall be treated as registration, henceforth. If the FPI fails to satisfy the DDP that it has attained broad based status within 180 days, it shall be reclassified as category III. SEBI has further clarified that if an existing broad based fund registered as Category II FPI, ceases to remain broad based on account of redemption etc., the applicant would be required to attain broad based status within 180 days and the same procedure outlined above will be followed.
  • +
    6.   While paying the conversion fees of USD 1000, does the FII or sub- account have to submit an application/ documents?
    Yes. At the time of payment of conversion fees, existing FIIs and sub-accounts will need to complete Form A as provided in the FPI regulations and enclose applicable documents required for the purpose of conversion to FPI. An applicant, which is an international/ multilateral agency such as World Bank and other institutions, established outside India for providing aid, which have been granted privileges and immunities from payment of tax and duties by the Indian Government are exempted from payment of such fees.
  • +
    7.   Is it necessary to pay the conversion fee now or can it be paid upon expiry of the FIIs 3 years block?
    The payment of conversion fees can be made now or at the time of expiry of FII/Sub Account in the three year block validity, however if the fees are paid at the time of expiry, then the FII will also need to pay the applicable renewal fees over and above the conversion fee. For example, if the FIIs registration is expiring in May 2016, the FII will need to pay USD 1,000 and USD 3,000 (if it falls under Category II) one month prior i.e. April 2016
  • +
    8.   What does the regulation specify in case of multiple FPIs have common beneficial ownership?
    Where multiple FPIs belong to the same investor group, the investment limits of all such FPIs shall be clubbed at the investment limit as applicable to a single FPI. It is expected that the depositories shall be responsible for such monitoring
  • +
    9.   What is the validity period of FPI registration?
    The validity period of the FPI registration is permanent unless suspended or cancelled by SEBI or surrendered by the FPI, however this is subject to payment of the applicable renewal fee during every three year block
  • +
    10.   Is it necessary for the FPI to appoint a Compliance Officer?
    Yes. Every FPI must appoint a compliance officer who will be responsible for monitoring the compliance of the Act, rules and regulations, notifications, guidelines and instructions issued by the designated depository participant or SEBI or the Central Government: In case an FPI is an individual, then the individual will be responsible for the above. The compliance officer is required to immediately and independently report to SEBI and the DDP regarding any non-compliance observed by him/ her
  • +
    11.   Is there any cap on the maximum shareholding limit by FPI?
    Yes. The purchase of equity shares of each company by a single FPI or an investor group must be below 10% of the total issued capital of the company
  • +
    12.   Can a FPI directly place order with a stock broker?
    Yes. Similar to FIIs, an FPI can place order directly with the broker
  • +
    13.   Can FPI purchase shares of an unlisted company?
    No. FPIs are not permitted to purchase shares of an unlisted company. Further, as per the regulations, FPIs can hold, deliver or cause to be delivered securities only in dematerialized form: Provided that any shares held in physical form, before the commencement of the regulations, can be held in physical form, if such shares cannot be dematerialized.
  • +
    14.   Can FPIs engage in borrowing or lending of funds or securities?
    Yes, FPIs are permitted to engage in borrowing or lending in accordance with the Securities Lending and Borrowing program of SEBI.
  • +
    15.   Is the investment through the FPI route freely repatriable?
    Yes. Investment made through the FPI route is freely repatriable, subject to payment of applicable taxes
  • +
    16.   Can FPIs open more than one depository account?
    No. Each FPI will be allowed to open only one depository account for their FPI investments. Further, purchase and sale of all eligible securities must be transacted through that depository account only
  • +
    17.   Are there any conditions placed on stock market transactions?
    Yes, there are certain conditions on placed on stock market transaction of FPIs. Some of the important ones are: • An FPI can transact in the securities only on the basis of taking and giving delivery of securities purchased or sold and no transaction on the stock exchange can be carried forward • The transaction should be only through stock brokers registered by SEBI • FPIs can deliver or cause to be delivered securities only in dematerialized form However, it may be noted that certain types of transactions have been excluded from meeting some of the above conditions. For example, the requirement of broker is relaxed for transactions in Government securities and such other securities falling under the purview of the RBI which shall be carried out in the manner specified by the RBI.

CONTACT US

Call us at +91-11-30111000
Email contact@smcindiaonline.com
Visit www.smcindiaonline.com
  • Head Office
    SMC Global Securities Ltd. 11/6B, Shanti Chamber
    Pusa Road, New Delhi - 110005
    Tel: +91-11-25754371
    Cell: +91- 9650988009
    Email: fpi@smcindiaonline.com
  • Mumbai
    02/303, Enterprise Centre, Nehru Road,
    Near Orchid Hotel, Vile Parle (E),
    Mumbai - 400099
    Tel: +91 22 26141905
    Cell: +91-9167338617
  • Dubai
    SMC Comex International DMCC
    (Member of DGCX and regulated by SCA)
    312,Belshalat Building,Al Karama
    Dubai,P.O. Box 117210, U.A.E.
    Tel: +9714 3963120
    Cell: +97150 2612483
    Fax:+97143963122
    E-mail: pankaj@smccomex.com
    www.smccomex.com
  • New York
    SMC Global USA Inc
    Alliance Bernstein Building
    1345 Avenue of the Americas, Second Floor
    New York, NY 10105, USA
    Tel: +1-212 878-3684
    Fax: +1-866 852-4236
    Email: info@smcglobalusa.com
    www.smcglobalusa.com
  • DELHI
  • MUMBAI
  • KOLKATA
  • AHMEDABAD
  • CHENNAI
  • BENGALURU
  • DUBAI
  • NEW YORK
SMC Global Securities Ltd. CIN No.: L74899DL1994PLC063609
REGISTERED OFFICE: 11/6B, Shanti Chamber, Pusa Road, New Delhi - 110005 • Tel +91-11-30111000 • Fax +91-11-25754365

NSE INB/INF/INE 230771431, BSE INB/INF 011343937,MSEI INB/INF 260771432 INE 260771431, USEL INE 271343936, CDSL IN-DP-CDSL-583-2010, NSDL IN-DP-NSDL-333-2010 (SMC Global Securities Ltd.) NCDEX: NCDEX/TCM/CORP/0131, MCX: MCX/TCM/CORP/0385,MCX MEMBER ID - 8200, NMCE: NMCE/TCM/CORP/0215, ICEX: ICEX/TCM/CORP/009, ACE: ACEL/CM/CORP/0267, UCX: 210001 (SMC Comtrade Ltd.), PMS INP000003435 (SMC Investments and Advisors Ltd.), IRDAI Reg. No: DB 272/04 License No. 289 (SMC Insurance Brokers Pvt. Ltd.), Merchant Banker INM000011427 (SMC Capitals Ltd.) Clients must read Risk Disclosure Document (RDD) & Do’s and Don’ts before investing" is included in the content of the Advertisement.

Investment in securities & commodities market are subject to market risk • All insurance products sold through SMC Insurance Brokers Pvt. Ltd. • Investment Banking Services provided by SMC Capitals Ltd. • Equity PMS and Wealth management services provided by SMC Investments & Advisors Ltd. • IPOs and Mutual Funds distribution service is provided by SMC Global Securities Ltd. • Financing Services provided by Moneywise Financial Services Pvt Ltd. • Insurance is the subject matter of solicitation • Commodity broking services provided by SMC Comtrade Ltd. • Real Estate Advisory services are offered through SMC Real Estate Advisors Pvt. Ltd. • Award sources: BSE-D&B Equity Broking Awards 2014,2013 & 2012 • Assocham SME Excellence Awards 2014 • Bloomberg-UTV Financial Leadership Awards 2012.