[Economy] QFI (Qualified Foreign Investor) vs FII, Need, Implication, Currency Depreciation, Demat Account and more (Story of Forex continues)DEVENDRA VISHWAKARMA
The Technically incorrect Story of Forex continues with new topics : FII, QFI (Qualified Foreign Investors), Demat, PAN card and more
What is FII, Why did Rupee weaken against Dollar. Why did QFI come?
- Story of Foreign Institutional Investor (FII)
- Serious Note on FII
- QFI: Qualified Foreign Investor
- Demat account?
- What is Depository?
- What is Depository Participants (DP)?
- Trading account for QFI
- PAN card
- QFI from Newspapers
- MOCK Economy Question for CSAT
Foreign Institutional Investor (FII)
Tom Cruise: What is FII?Anil Kapoor: It means foreign player can invest money in Indian stock market.
Tom Cruise: Cool. Tell you what, I’m not getting much interest-rate in my savings account in American bank, I got $1 million in the suitcase, let’s go to Bombay Stock Exchange and buy some shares!
Anil Kapoor: Ain’t that easy! An individual foreigner can’t simply walk in the Dalal street and do shopping. Go to Maxwell Assets Manager . He will explain everything to you.
Sub-Account under FII
Maxwell Manager: I’m an established financial asset Management firm. I’ve got a licence from SEBI to operate as an FII (foreign institutional investor) in Indian market. (After paying $5000 application fees). Mr.Cruise, you will have to register as ‘sub-account’ under our FII firm. And then you give your suitcase to us, we’ll invest it in Indian stock market on your behalf.
Tom Cruise: Are you the only FII guy ?
Maxwell Manager: Well I’m not the only FII, there are many others like BNP PARIBAS, MORGAN STANLEY and other 1,700 FIIs and more than 5,500 sub-accounts registered with SEBI. But we are the best, we charge the least Commission and give free caller tunes and Unlimited talk time*. So, Let’s goto SEBI office and get it done. (*conditions apply)
cut to SEBI Office.
Peon: Our Saaheb is gone for tea-break so wait for 145 minutes.
(after 145 minutes)
Tom Cruise: (to the SEBI clerk) ya I wanna open a FII sub-account.
SEBI Clerk: oh Really? Every desi dude here wants to be an IAS, IIM, IIT and every firangi dude wants to be an FII ever since the sub-prime crisis. But are you a wealthy foreign individual or firm with a minimum net worth of $50 million (about Rs. 260 crore)? Only then we give the license, and not to any random swinging dude that walks into our office!
Tom Cruise You don’t know me? I’m the Tom Cruise.
SEBI Clerk Who’s that?
Maxwell Manager He is a famous Hollywood hero, got billions of dollars.
SEBI Clerk hmm never heard of you. I only watch the movies of India’s Finest Actor, Fighter, Dancer and Bollywood Superstar Mimoh Chakraborty. Anyways here is the application form for $1000. Fill it up, Attach photocopies of your id and address proof, 10th,12th, Graduation marksheets, Work-Ex and Extra curricular activity certificates: Everything in triplicate, and attested by a Gazetted Officer and your three passport sized photographs with white background, no smile, and sign on your photo with black pen only.
Tom Cruise: Man this is so hopeless, it sounds like a perfect plot for Mission Impossible #5. Anil Kapoor can get the 2 minute’s role of Gazetted Officer, while I fool the Indian audience for the second time spreading rumors that he is given a big role just like in MI-4!
Tom gets the sub account opened.
Maxwell Manager: congrats. Now we can invest your money in Indian Stock market on your behalf, so which company do you want to put your money in?
Tom Cruise: hmm, I’ve been doing some market research myself, recently saw Abhishek Bacchan’s Idea 3G ad in Divya-Bhaskar (Gujarati Edition), I think that company and its 3G service is going to be huge hit. Buy some Idea-shares for me so I can earn huge dividends later on. Also buy a few of Vedanta cause they acquired some oilfields from Cairn India, they will also make huge profits and pay good dividends to their shareholders.