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Home  > Products > Broking > FPI Investments

Why Invest in India?

Demography and Economy

  • Urban Population to grow from 31.1% to 46% by 2030. leading to increase in demand
  • Strong GDP growth rate of 7.6%
  • 5.3 Fixed capital formation growth rate

Political

  • Stable goverment with absolute majority after 30 years
  • Strong and important initives like Jan Dhan. Digital India. Make in India. Start-up India and many more

GST

  • Constitution amended for introduction of Goods and Services Tax (GST) bill on Aug 03, 2016
  • This will replace all other taxes levied by state and central govt. and will boost GDP growth in India

Production and Price

  • 3.1% increase in index of industrial production
  • 4.4% growth in electricity generation

Demonetization Drive

  • The Government Demonetized 14.18 lakh crore approx, of   500 and 1000 notes
  • Drive created to eradicate black money and counterfeit currency
  • High value of funds deposited in the banks will lead to low interest rates and increased demand

External Sector

  • 15.5% decline in imports
  • Strong foreign reserves and current account deficit reduced to 0.3%

Open my trading account now!

* All feilds are compulsory

Services Offered to FPI

Online Trading in Equities and Derivatives I Distribution Services of IPO and MF I Real Estate Advisory Services I SMC Easy Go: Back Office Support on Mobile I Award Winning Research Desk I Dedicated FPI Support Desk I Depository Services

Type Of Investment Allowed

Equity

  • Shares, Debentures and Warrants, Listed or to be listed (both Primary / Secondary)
  • Units of domestic Mutual Fund Schemes, whether listed or not
  • Indian Depository Receipts (IDRs) & Other instruments as permitted from time to time

Debt

  • Dated Government Securities
  • Commerical Papers issued by an Indian Company
  • Security Receipts issued by Asset Reconstruction Companies
  • Perpetual Debt instruments and debt capital instruments, as speified by RBI from time to time
  • Infrastructure NCDs and Bonds

Derivatives

  • Equity
  • Interest Rate
  • Currency

Real Estate Funds

  • Alternate Investment Funds
  • Real Estate Investment Trusts
  • Infrastructure Investment Trusts

About SMC

Established in 1990, SMC is a well-diversified financial services company in India offering services across brokerage (across the asset classes of equities (cash and derivatives), commodities and currency), investment banking, wealth management, distribution of third party financial products, research, financing, depository services, insurance broking and clearing services and real estate advisory services to corporate, institutional, high net worth individuals and other retail clients.

Serving over
18 Lac unique clients
Workforce of
3,000 + employees
Presence in 500+ cities in India & abroad
large network of 2,500+ sub-brokers & authorised persons
*As on June 2017

Our Offerings

Broking

Trading member of equity, commodity & currency segments of all the leading exchanges

Wealth Management

SEBI registered portfolio manager-providing client specific portfolio & wealth managment services

Investment Baking

Category 1 merchant banker-private equity, M&A, corporate advisory, debt syndication, FCCB, IPO, FPO, right issue etc.

Distribution

Distribution of mutual funds, IPOs, corporate fixed deposits, GOI bonds and NCDs

Institutional Broking

(Institutional Trading and Advisory Services)

NRI & FPI Services

Providing trading facilities to Non-resident Indians (NRI) & Foreign Portfolio Investors (FPI)

NBFC (Financing)

Provide loans to salaried, self employed, professionals or businessman and capital or commodity market clients

Mortgage Advisory

Providing secured loans, unsecured loans, project funding and SME loans to investors, corporates and propertyowners across the country

Alternate Investment Fund

A real estate fund for individual and institutional investors

Clearing Services

Manage the clearing services for trading members in different segments of various exchanges

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

Classification

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 foreigncentral banks, government agencies, SWFs, ultilateral 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 Document

Individuals

  • Proof of Identity (Passport mandatory)
  • Proof of Address
  • Bank Proof
  • Bank Letter
  • PAN

Non-Individuals

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

Registration Flow Process

Obtain Tax
Registrations

Appoint CPA of your Choice
Submit requisite forms and supporting documents

Register as Foreign Portfolio Investor (FPI)

Appoint DDP and Custodian
Submit Form 'A' and KYC Form along with supporting documents to your Custodian

Open Bank Accounts in India

Choose a Bank of your Choice
Submit requisite forms and supporting documents

Custodian opens Depository Account and Obtains UCC & CP Code from Exchanges

Open Trading Account with Broker

Choose a Broker of Your Choice
Submit requisite forms and supporting documents

Start Investing in India by

Remitting Funds from Overseas Bank Account to the Bank Account opened in India.
Place Orders with Broker

Process and fees - Custody Process

Particulars Category I Category II Category III Indicative Time Frame
1 Particulars
Provide documentation for PAN Registration
Provide documentation for SEBI Registration
8 - 15 Days
3 - 5 Days
2 SEBI Fees Payable in US only Payment for every block of three years NIL US 3,000 US 3,000
3 Registration done, what next?
Open Cash Accounts with a Bank
Open a Custody Account with Custodian
Open a Brokerage Account with Broker
2 - 4 Days
2 - 4 Days
2 - 4 Days
*Participation Condition:subject to investment of upto 10% in the share capital

FAQs

What is the definition of broad based fund?
What is the status of registration for existing FIIs and sub-accounts?
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?
How does the applicant confirm compliance with the broad base requirement?
While paying the conversion fees of USD 1000, does the FII or sub- account have to submit an application/ documents?
Is it necessary to pay the conversion fee now or can it be paid upon expiry of the FIIs 3 years block?
What does the regulation specify in case of multiple FPIs have common beneficial ownership?
What is the validity period of FPI registration?
Is it necessary for the FPI to appoint a Compliance Officer?
Is there any cap on the maximum shareholding limit by FPI?
Can a FPI directly place order with a stock broker?
Can FPI purchase shares of an unlisted company?
Can FPIs engage in borrowing or lending of funds or securities?
Is the investment through the FPI route freely repatriable?
Can FPIs open more than one depository account?
Are there any conditions placed on stock market transactions?

Contact Us

DELHI

Head Office
SMC Global Securities Ltd.
11/6B, Shanti Chamber
Pusa Road, New Delhi-110005
Phone : 91-11-25754371
Cell no. : +91- 9650988009
Email :nridesk@smcindiaonline.com


DUBAI

2404, 1 Lake Plaza Tower , Cluster T,
Jumeriah Lake Towers ,
PO Box 117210,
Dubai, UAE
Tel:+97145139780
Fax: +97145139781
Email :pankaj@smccomex.com


MUMBAI

SMC Global Securities Ltd.
Lotus Corporate Park,
A Wing 401 / 402 , 4th Floor ,
Graham Firth Steel Compound,
Off Western Express Highway,
Jay Coach Signal,
Goreagon (East), Mumbai - 400063
Phone: +912226141905