Qualified Foreign Investor QFI is a sub category of Foreign Portfolio Investor They are allowed to i...........

Economic Affairs Foreign Investment

Qualified Foreign Investor (QFI) is a sub-category of Foreign Portfolio Investor. They are allowed to invest in which of the following segments of the capital market?

1. Mutual Funds

2. Equities

3. Corporate Debt

Select the correct answer using the code given below.

1 and 3 only

2 only

2 and 3 only

1, 2 and 3

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Explanation:

The Qualified Foreign Investor (QFI) is sub-category of Foreign Portfolio Investor and refers to any foreign individuals, groups or associations, or resident, however, restricted to those from a country that is a member of Financial Action Task Force (FATF) or a country that is a member of a group which is a member of FATF and a country that is a signatory to International Organization of Securities Commission's (IOSCO) Multilateral Memorandum of Understanding (MMOU).
The objective of enabling QFIs is to deepen and infuse more foreign funds in the Indian capital market and to reduce market volatility as individuals are considered to be long term investors, as compared to institutional investors.
They are allowed to invest in - mutual funds, equities and corporate debt.
Foreign Portfolio Investors = Foreign Institutional Investors + QFIs + subaccounts.