Regulations governing fii in india

2.  Foreign institutional investors means "an
institution established or incorporated
outside India which proposes to make
investment in India.
 It denotes all those investors or investment
companies that are not located within the
territory of the country in which they are
investing.

3.  Fastest growing economy.
 Strong forex reserves.
 Economic reforms.
 Corporate restructuring.
 Information Technology
the growth engine.

4.  An application for registration has to be made in Form A, the format
of which is provided in the SEBI(FII) Regulations, 1995 and
submitted with the required documents in duplicate addressed to
SEBI as well as to RBI and sent to SEBI within10-12 days of
receipt of applications.
 Documents to be sent to SEBI:
 Certified copy of relevant clauses of Memorandum of
association, Articles of association/Articles of incorporation.
 Audits financial statement and annual for the last one year.(should
not be less than 12 months)

5. As per SEBI (FII) Regulations,1995, FII's are required
to fulfill the following conditions to qualify for grant of
registration:
 Good track record, professional competence and
financial soundness.
 Regulated by appropriate foreign regulatory authority in
the same capacity/category where registration is sought
from SEBI. (Registration with authorities which are
responsible for incorporation, is not adequate to qualify as
FII.)

6.  Permission under the provisions of the Foreign
Exchange Management Act, 1999 (FEMA) from the
RBI..
 Legally permitted to invest in securities outside country
or its incorporated/establishment.

7.  The applicant must be a ‘fit and proper’
person. (Guidelines by SEBI)
 Local custodian and designated bank to
route its transactions.

8.  Fee for registration as FII is US $ 5,000 at the time of submitting the
application for registration. Demand Draft in favor of "Securities and
Exchange Board of India" payable at New York.
 SEBI generally takes seven working days in granting FII registration.
However, in cases where the information furnished by the applicants is
incomplete, seven days shall be counted from the days when all necessary
information sought, reaches SEBI.
 In cases where the applicant is bank and subsidiary of a bank, SEBI
seeks comments from the Reserve Bank of India (RBI). In such cases,
7 working days would be counted from the day no objection is
received from RBI.
 The FII registration is valid for 5 years. After expiry of 5 years, the
registration needs to be renewed. Along with "Form A" and all the relevant
documents, the applicants are required to fill in additional form (Annexure
1) while applying for renewal. Yes, US $ 5,000 needs to be paid for
renewal of FII registration.

10.  A FII can make investments only in the following types of
securities:
 Securities in the primary and secondary markets including shares,
debentures and warrants of unlisted, to- be-listed companies or
companies listed on a recognized stock exchange.
 Units of schemes floated by domestic mutual funds including Unit Trust
of India, whether listed on a recognized stock exchange or not, and
units of scheme floated by a Collective Investment Scheme.
 Government Securities
 Derivatives traded on a recognized stock exchange – like futures and
options. FIIs can now invest in interest rate futures that were launched
at the National Stock Exchange (NSE) on 31st August, 2009.
 Commercial paper.
 Security receipts.