Investment Regulations

Regulations for investment’s by FII’s in India

FII Regulations in India:

Investment by Foreign Institutional Investors (FII’s) is regulated under SEBI (FII) Regulations, 1995. Following are some of important regulations by SEBI and RBI:

  • The total investments in equity and equity related instruments (including fully convertible debentures, convertible portion of partially convertible debentures and tradable warrants) made by a Foreign Institutional Investor in India, whether on his own account or on account of his sub- accounts, should be at least seventy per cent of the aggregate of all the investments of the Foreign Institutional Investor in India, made on his own account and through his sub-accounts.
  • The cumulative debt investment limit for FII investments in Corporate Debt is USD 15 billion.
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Double Taxation Avoidance Agreement (DTAA)

A major portion of international capital flows entering the Indian economy is aided by taxation laws and systems among countries like the Double Taxation Avoidance Agreement.

The phenomenal growth in international trade and commerce and increasing interaction among nations, citizens, residents and businesses of one country has extended their sphere of activity and business operations to other countries. A person earning any income has to pay tax in the country in which the income is earned (as Source Country) as well as in the country in which the person is resident. As such, the income is liable to be taxed in both the countries.… Read the rest

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