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Investment Destination >>>Investment Destination >>> IINNDDIIAA
Qualified Depository Participant (QDP)
&
Custodial Services
to
Qualified Foreign Investors (QFIs)
Meant for circulation in India only
Index
3 ISSL’s Pedigree 16 Tax clarifications
4 ISSL’s Bouquet of Products & Services 17 Examples – applicability of WHT
5 Definition of ‘Qualified Foreign Investor’ 18 Examples – applicability of WHT5 Definition of ‘Qualified Foreign Investor’ 18 Examples – applicability of WHT
6 Definition of ‘Person’ 19 Examples – applicability of WHT
7 Definition of ‘Person Resident in India’ 20 Examples – applicability of WHT
8 List of eligible Countries 21 NRI vis-à-vis QFI
9 Empanelment Process 22 Process for converting from NRI to QFI
10 KYC Document Requirement 23 QFI vis-à-vis Sub-Account of an FII
11 Permitted Transactions 24 Circulars & FAQs issued by the Regulators
Meant for circulation in India onlySlide # 2
11 Permitted Transactions 24 Circulars & FAQs issued by the Regulators
12 Restrictions & Position Limits 25 Role of ISSL as QDP and Custodian
13 Order Flow Chart (Buy) 26 Why ISSL
14 Indicative list of other expenses 27 Contact Coordinates
15 Indicative list of applicable taxes 28 Let’s Rock
Promoted by M/s Infrastructure Leasing & Financial Services Limited(IL&FS), a premier AAA rated financial institution with a strong lineage of
ISSL’s Pedigree
(IL&FS), a premier AAA rated financial institution with a strong lineage ofCentral Bank of India, Housing Development Finance CorporationLimited, Unit Trust of India, State Bank of India, Life InsuranceCorporation of India, ORIX Corporation – Japan and Abu DhabiInvestment Authority – UAE
ISSL is one of the few neutral, non-competing (non-banking and non-broking – directly or indirectly) entities providing fee and fund basedbroking – directly or indirectly) entities providing fee and fund basedproducts tailor made for the Indian Broking fraternity, Retail andInstitutional Investors
At your service since 1995, i.e. 17 years of rich capital market experience
Meant for circulation in India onlySlide # 3
• Custodian – BSE & NSE• Depository Participant – Equity (CDSL & NSDL)
Commodity (MCX, NCDEX, NSEL & UCX)• Clearing & Settlement – Equity Derivatives (BSE, MCX-SX & NSE)
ISSL’s Bouquet of Products & Services
• Clearing & Settlement – Equity Derivatives (BSE, MCX-SX & NSE)Currency Derivatives (MCX-SX, NSE & USE) Commodity Derivatives (MCX & NCDEX)
• Retail Clearing Member – Cash Segment – Equity (BSE & NSE)• Securities Lending & Borrowing Participant / Member (ICCL & NSCCL)• Third Party PMS, Broker & Depository - Back Office Service Provider• Fund Accounting and Data Analytics Services• Index Creation and Maintenance Services• Index Creation and Maintenance Services• Loans against Demat Shares, Mutual Fund Units, Demat Commodities• IPO and ESOP financing• Technology Services – Data Centre, DR, BCP, Co-location facility• Trustee Services – Technical and Functional support to AIF providers• Miscellaneous Activities : PAN, NPS, NSR, CMS, XBRL
Meant for circulation in India onlySlide # 4
A person (*) who fulfils the following criteria :
• Resident in a country that is a member of FATF or a member of agroup which is a member of FATF;
Definition of ‘Qualified Foreign Investor’ (“QFI”)
group which is a member of FATF;
• Resident in a country that is a signatory to IOSCO’s MMOU(Appendix A Signatories) or a signatory to a bilateral MOU withSEBI
• Not registered with SEBI as a Foreign Institutional Investor (FII) or aSub-Account of a FII or Foreign Venture Capital Investor (FVCI) orNon Resident Indian (NRI)Non Resident Indian (NRI)
• Not forming a part of the Al-Qaida sanctions list published by theUN Security Council Committee
• Not a resident in India
Meant for circulation in India onlySlide # 5
(*) : As defined under the Income Tax Act, 1961
As per the Income Tax Act, 1961 :
• an Individual
Definition of ‘Person’
• an Individual
• a Hindu Undivided Family
• a Partnership Firm
• a Company
• an Association of Persons
• a Body of Individual
• a Local Authority• a Local Authority
• every other Artificial Juridical Entity
Meant for circulation in India onlySlide # 6
(A) "Resident in India" means a person who has stayed in India for minimum of 182 days during the
immediately preceding 1 year and does not include:
(1) a person who has gone out of India or who stays outside India, in either case –
(a) for or on taking up employment outside India, or
Definition of ‘Person Resident in India’
(a) for or on taking up employment outside India, or
(b) for carrying on outside India a business or vocation outside India, or
(c) for any other purpose, in such circumstances as would indicate his
intention to stay outside India for an uncertain period;
(2) a person who has come to or stays in India, in either case, otherwise than –
(a) for or on taking up employment in India, or
(b) for carrying on in India a business or vocation in India, or
(c) for any other purpose, in such circumstances as would indicate his
intention to stay in India for an uncertain period;intention to stay in India for an uncertain period;
(B) any person or body corporate registered or incorporated in India,
(C) an office, branch or agency in India owned or controlled by a person resident outside India,
(D) an office, branch or agency outside India owned or controlled by a person resident in India
Meant for circulation in India onlySlide # 7
“Resident” in a country other than India shall mean resident as per the direct tax laws of that country
List of Countries & DTAA relationship
Country D Country D Country D
Australia √ Greece √ Portugal √
Austria √ Hong Kong X Romania √
Note : IST = GMT + 5.30 hrs
Bahrain X Hungary √ Russia √
Belgium √ Iceland √ Saudi Arabia √
Brazil √ Italy √ Singapore √
Bulgaria √ Japan √ Slovakia X
Canada √ Lithuania X Slovenia √
China √ Luxembourg √ South Africa √
Cyprus √ Malta √ South Korea √
Czech Republic √ Mexico √ Spain √Czech Republic √ Mexico √ Spain √
Denmark √ Netherlands √ Sweden √
Estonia X New Zealand √ Switzerland √
Finland √ Norway √ United Arab Emirates √
France √ Oman √ United Kingdom √
Germany √ Poland √ United States of America √
Meant for circulation in India only
DTAA Relationship : √ - Exists , X – Does not Exist
Slide # 8
Empanelment Process
Client Online Registration with Primary Data
Client to generate pre-filled forms, verify contents, affix photographs and signatures
Client to scan dox and upload online as per checklist
ISSL to verify scanned dox and provide a feedback / confirmation to client
On receipt of confirmation, Client to courier Physical Dox to ISSL
ISSL to coordinate with internal and external entities for account opening
Client to arrange dox to be Notarized / Consularized / Attested by a Competent Authority
Meant for circulation in India onlySlide # 9
Dox
Screening
1 Day
KRA
Registration
7 Days
Broking
Account
3 Days
Bank
Account
7 Days
PAN
Registration
15 Days
Demat
Account
3 DaysParallel Activity
Approx 30 Days
KYC Dox (duly Apostilled / Attested by Indian Consulate : 3 sets each)
INDIVIDUALS• Proof of Identity
• Copy of valid Passport• Copy of valid Identity Card / Citizenship
NON-INDIVIDUALS• Proof of Identity & Proof of Address
• Certificate of Registration issued in the country where the applicant is located• Copy of valid Identity Card / Citizenship
Card issued by Government of Residence Country
• Proof of Residential Address• Copy of valid Passport• Copy of valid Identity Card / Citizenship
Card issued by Government of Residence Country
• Copy of Taxpayer Identification Number issued by Government of Residence country
country where the applicant is located• Registration Certificate issued in India or
of approval granted to set up office in India by Indian Authorities
• Proof of Overseas Bank Account• Tax Residency Certificate• Balance Sheet for the last 2 years (to be
submitted every year)• M&AoA / Partnership Deed / Trust Deed• List of Signatories / Partners / Trustees• Additionally, Proof of Identity and Proof of
Meant for circulation in India onlySlide # 10
Residence country• Copy of Bank Account Statement
(containing atleast two customer induced transactions in the last six months) in the country of residence
• Proof of Overseas Bank Account• Tax Residency Certificate
• Additionally, Proof of Identity and Proof of Residential Address (as per details provided in the ‘Individuals’ table) of the Whole Time Directors / Two Directors in charge of day-to-day operations / individual promoters holding control / Partners / Trustees
IMP : Translation in English language is mandatory
Permitted Transactions
Sr Category Transaction Types
1 Equity Shares Primary Market (IPOs, FPOs)
Secondary Market (through Regd Brokers)Secondary Market (through Regd Brokers)
Corporate Actions (Rights, Bonus, Buy- backs, Splits, Consolidation, Amalgamations, Demergers, Mergers, Open Offers)
Benefits (Dividend)
2 Mutual Funds – Equity and Debt (min 25% in Infrastructure) oriented
Purchase / Subscription (demat route only)
Redemption
Benefits (Dividend)
Meant for circulation in India only
Benefits (Dividend)
3 Debt Securities –NCDs, Corporate Bonds, listed Debt MF Schemes
Primary Market (To be listed - Public Issues)
Secondary Market (listed on Indian Stock Exchanges)
Corporate Actions (Interest, Buy-backs, Redemptions)
Slide # 11
QFIs have been permitted to hedge their currency risk on the OTC market vide RBI Circular dated 31-Aug-2012
• Cannot issue Offshore Derivatives Instrument (ODIs) or Participatory Notes (PNs)• Omnibus / Opaque Structure not permitted – disclosure of end client mandatory,
order execution at individual client level and not on a pooled basis• An individual cannot co-exist both as an NRI and QFI at the same time
Restrictions & Position Limits
• Cannot pledge holdings or take funding against them• Cannot participate in Securities Lending and Borrowing• No margin financing facility – only cash and carry, no short selling, no net-off of deliveries• No off-market transfers, SIPs, STPs, SWPsPOSITION LIMITS Max Limit Caution Limit (*)
Equity Shares Individually – QFI + FDI Route : 5% of the Paid Up Capital
Collectively – QFI + FDI Route : 10% of the Paid Up Capital
Collectively – QFI + FDI Route : 8% of the Paid Up Capital10% of the Paid Up Capital 8% of the Paid Up Capital
Mutual Funds – Equity oriented Collectively : USD 10 Bn Collectively : USD 8 Bn
Mutual Funds – Debt oriented –Infrastructure centric
Collectively : USD 3 Bn Collectively : USD 2.70 Bn
Debt – Corporate Bonds, NCDs & listed MF Debt Schemes
Collectively : USD 1 Bn
Meant for circulation in India only
( * ) Specific approvals of Depository are required for any further investments
Slide # 12
Order Flow (Buy)
2 5
43
1 : QFI pre-funds LBA
2 : QFI inputs order into OMS
3 : OMS validates order
4 : Failed order rejected
5 : Passed order forwarded
6 : Trade details forwarded
7 : OMS updates RMS
8 : Trade details to QFI
9 : Funds trf LBA – PBA – Exch
10 : Stocks trf Exch – PDA - LDA
Qualified Foreign Investor (QFI)
OMS
78 6
5
6
1010
Broker
Meant for circulation in India onlySlide # 13
Overseas Bank A/c ExchangeLocal Bank A/c
1
Local Demat A/c
Pool Bank A/c
Pool Demat A/c
9 9
Indicative list of Other Charges / Fees / Levies
Charge Head Particulars
Onboarding / Account Setup Approx USD 100 (includes stamp papers, notary, etc)
Brokerage As decided between QFI and Broker / Wealth Manager / Agent
Stamp Duty 1 bps of transaction value
Exchange Transaction Charges 0.325 bps of transaction value
SEBI Turnover Fees 0.01 bps of transaction value
Securities Transaction Tax 10 bps of transaction value
Clearing & Custodial Fees As decided between QFI and QDP / Custodian
Entry / Exit Loads Differs from Fund to Fund, Scheme to Scheme
Chartered Accountants Services As per services utilized
Meant for circulation in India onlySlide # 14
Chartered Accountants Services As per services utilized
Bank Charges Charges / Spread on Inward and Outward Remittances
Hedging Cost incurred on hedging Forex Risk with Bank on OTC basis
WithHolding TaxDiffers from case to case. Other factors : type of income (Business Income or Capital Gains), DTAA relationship, Indexation, etc
Service Tax is applicable on almost all the above and this is currently 12.36% or 1236 bps of the levy
Indicative list of applicable taxes (in %, inclusive of cesses)
Payment
QFI
NRI FII (#1)Corporate
(#1)
Non
Corporate
Dividend from Shares / Equity oriented Mutual Funds (if 0.00 0.00 0.00 0.00
Dividend from Shares / Equity oriented Mutual Funds (if declaring Company pays Dividend Distribution Tax u/s 115O)
0.00 0.00 0.00 0.00
Dividends -other than those on which Dividend Distribution Tax paid
20.60 20.6014.163 /
28.325 (#2)Interest from Corporate Bonds 20.60 20.60 20.60Short Term Capital Gains Tax from sale of Equity Shares / Equity oriented Mutual Funds (if STT paid)
15.45 15.45 15.45 15.45
Long Term Capital Gains Tax from sale of Equity Shares / Equity oriented Mutual Funds (if STT paid)
0.00 0.00 0.00 0.00
Short Term Capital Gains Tax from sale of Debt oriented M/F’s 41.20 30.90 30.90 30.90
Long Term Capital Gains Tax from sale of Debt oriented M/F’s10.30 /
20.60 (#3)10.30 /
20.60 (#3)10.30 /
20.60 (#3)10.30Long Term Capital Gains Tax from sale of Debt oriented M/F’s
20.60 (#3) 20.60 (#3) 20.60 (#3)10.30
Other Short Term Capital Gains 41.20 30.90 30.90 30.90Other Long Term Capital Gains 20.60 20.60Other Income 41.20 30.90
#1 : If payment exceeds Rs 1 Cr in the FY, additional surcharge of 2.50% would be deducted. Education Cess of 3.00% would be deductible onIncome Tax and Surcharge
#2 : Liquid / Money Market Schemes#3 : With indexationRates specified under DTAA or rates prescribed by the Finance Act, whichever more beneficial to the recipient has to be applied for deduction of tax u/s 195Subject to validation from your own CA
Meant for circulation in India onlySlide # 15
1. PAN and TRC (Tax Residency Certificate) mandatory to avail DTAA benefit (applicability of taxat lower of DTAA rate and normal rate)
2. Nature of transactions, motive of investment, manner of maintaining books, length of holdingperiod, etc to determine type / category of income (Business Income or Capital Gains)
3. QDP responsible for all tax matters. Can enlist services of CAs. QDP required to deduct
TAX Matters
3. QDP responsible for all tax matters. Can enlist services of CAs. QDP required to deductwithholding tax prior to release of sale proceeds into QFI’s local bank account
4. Tax applicable on Settlement Date basis (profits and losses across multiple transactions in thesame settlement number can be netted off)
5. Refund of surplus tax paid can be claimed only if IT Return filed within scheduled period6. Losses allowed to be carried forward to next FY provided IT Return declaring the loss for the
relevant year filed within stipulated timeline7. Losses of previous FYs cannot be set-off against profits of current FY by QDP. QFI required to
file IT Return to claim set-off against tax paid on profits in current FY8. Any loss of current FY available at time of deducting tax eligible can be set off against the sum8. Any loss of current FY available at time of deducting tax eligible can be set off against the sum
payable based on which tax may be withheld on a net basis9. Gains and Losses from transactions subject to Securities Transaction Tax (STT) (eg. Equity
Shares and Units of Equity Oriented Mutual Funds) and those that are not subject to STT (eg.Bonds and Units of Debt Mutual Funds) cannot be set off against each another
10. Once tax on profit has been withheld, the amount cannot be reduced or adjusted against aloss in a subsequent transaction
11. CA’s certificate required prior to outward remittance of funds
Meant for circulation in India onlySlide # 16
Applicability of WithHolding Tax (WHT) on Sale Txns - Examples
Sett No Trade Date Sett DateScrip
Symbol
Profit (+)
/ Loss (-)Tax Implication
N2013001 01JAN2013 03JAN2013 TCS + 2000QDP to withhold tax on profit of 2000 and pay to N2013001 01JAN2013 03JAN2013 TCS + 2000 profit of 2000 and pay to Govt by 07FEB2013
DR-191/2012-2013 01JAN2013 03JAN2013 532540 - 2000 No tax applicable on loss
Though both transactions are in the same scrip and have been settled on the same date, the Sett Nos aredifferent as the transactions have been executed on different Exchanges. Hence, tax would be applicable onthe profit transaction, which would have to be withheld by the QDP and paid to the Govt by 07FEB2013.Assuming that the QFI does no other transaction during the entire FY, the Net Profit / Loss during the FYwould be 0 (zero). Hence, no tax would be applicable for the FY. However, since tax has already been paid onthe profitable transaction, the QFI would be required to file the IT Return within the stipulated timelines toclaim refund of the surplus tax paid
Scrip Profit (+)
Meant for circulation in India onlySlide # 17
Sett No Trade Date Sett DateScrip
Symbol
Profit (+)
/ Loss (-)Tax Implication
DR-191/2012-2013 01JAN2013 03JAN2013 532540 - 2000 No tax applicable on loss
N2013001 01JAN2013 03JAN2013 TCS + 2000QDP to withhold tax on profit of 2000 and pay to Govt by 07FEB2013
Same effect as above situation
Applicability of WithHolding Tax (WHT) on Sale Txns - Examples
Sett No Trade Date Sett DateScrip
Symbol
Profit (+)
/ Loss (-)Tax Implication
N2013018 24JAN2013 29JAN2013 INFY + 2000QDP to withhold applicable Tax on profit of 2000 and pay to Govt by 07FEB2013
N2013019 25JAN2013 29JAN2013 INFY - 2000
No tax applicable on lossQDP not authorized to adjust / set-off this loss against profit of 2000 in previous sett QFI to file IT Return to claim set-off
Sett No Trade Date Sett DateScrip
Symbol
Profit (+)
/ Loss (-)Tax Implication
Meant for circulation in India onlySlide # 18
Symbol / Loss (-)
N2013018 24JAN2013 29JAN2013 INFY - 2000 No tax applicable on loss
N2013019 25JAN2013 29JAN2013 INFY + 2000
Set off available on losses incurred in previous settlements of the same FY. Hence no tax payable against profit incurred in this transaction
Applicability of WithHolding Tax (WHT) on Sale Txns - Examples
Sett No Trade Date Sett DateScrip
Symbol
Profit (+)
/ Loss (-)Tax Implication
N2013001 01JAN2013 03JAN2013 TCS + 2000 Tax applicable on Sett basis. Since net profit in this Sett is Since net profit in this Sett is 0, no tax is applicableN2013001 01JAN2013 03JAN2013 TCS - 2000
Profit (+)
Sett No Trade Date Sett DateScrip
Symbol
Profit (+)
/ Loss (-)Tax Implication
N2013001 01JAN2013 03JAN2013 TCS + 2000 Tax applicable on Sett basis. Since net profit in this Sett is 0, no tax is applicableN2013001 01JAN2013 03JAN2013 ACC - 2000
Meant for circulation in India onlySlide # 19
Sett Date Scrip SymbolProfit (+)
/ Loss (-)Tax Implication
08JAN2013 Equity oriented Mutual Fund + 2000QDP to withhold tax on profit of 2000 in EOMF as profits / losses on transactions on which STT is applicable cannot be set-off against transactions on which STT is not applicable
08JAN2013 Debt oriented Mutual Fund - 2000
Applicability of WithHolding Tax (WHT) on Sale Txns - Examples
Sett No Trade Date Sett DateScrip
Symbol
Profit (+)
/ Loss (-)Tax Implication
DR-206/2012-2013 22JAN2013 24JAN2013 500410 - 2000 Loss accumulated
DR-207/2012-2013 23JAN2013 28JAN2013 500325 + 2000 Set-off against loss in PS avblDR-207/2012-2013 23JAN2013 28JAN2013 500325 + 2000 Set-off against loss in PS avbl
DR-208/2012-2013 24JAN2013 29JAN2013 500209 + 5000 Tax payable on 5000
DR-209/2012-2013 25JAN2013 29JAN2013 500209 - 1000 No tax applicable
DR-210/2012-2013 28JAN2013 30JAN2013 532555 - 2000 No tax applicable
DR-211/2012-2013 29JAN2013 31JAN2013 500550 + 500 Set-off against loss of 3000
DR-212/2012-2013 30JAN2013 01FEB2013 500180 + 1500 Set-off against loss of 2500
DR-213/2012-2013 31JAN2013 04FEB2013 500010 + 1000 QDP to withhold tax on 5000
Meant for circulation in India onlySlide # 20
DR-213/2012-2013 31JAN2013 04FEB2013 500010 + 1000 QDP to withhold tax on 5000- 1000 Accumulated Loss+ 6000 Equity+EqOMF
(+1000 -2000 +5000 +2000)-------------------------------------Set-off of loss on DOMF not available (cannot mix STT and Non-STT transactions)
DR-213/2012-2013 31JAN2013 04FEB2013 532873 - 2000
DR-213/2012-2013 31JAN2013 04FEB2013 500510 + 5000
Equity O M-Fund 04FEB2013 + 2000
Debt O M-Fund 04FEB2013 - 2000
NRI vis-à-vis QFI
NRI QFI
PIS approvals required from RBI Approval generic in nature as long as set criteria are met
Idle funds in bank account earn interest Bank account of non-interest bearing Idle funds in bank account earn interest Bank account of non-interest bearing nature
Can trade in Equity Derivatives through NRO funds
Cannot trade in Equity Derivatives
Can participate in SLB Segment Cannot participate in SLB Segment
Can invest in G-Secs and T-Bills upto a predetermined limit
Cannot invest in G-Secs and T-Bills directly but can invest in debt oriented mutual funds which invest in G-Secs and
Meant for circulation in India onlySlide # 21
T-Bills
Repatriation permitted subject to certain conditions and upto applicable limits
Funds freely repatriable subject to payment of taxes
CA’s certificate (15CB) required for each sale transaction
CA’s certificate (15CB) required only at time of outward remittance of funds
Tax management responsibility on Bank Tax management responsibility on QDP
Process for converting from ‘NRI’ to ‘QFI’
• Liquidate / Sell-off all holdings bought through the PIS route
• Close all Demat Accounts under the NRI category
• Surrender the PIS Permission / License through the Bank• Surrender the PIS Permission / License through the Bank
• Close the Bank Accounts under the NRE and NRO categories
• Close Broking Accounts under the NRI category
• Apply to the KRA for change in status from ‘NRI’ to ‘QFI’
• Open fresh Bank Account under the QFI category
• Open fresh Demat Account with a QDP under the QFI category
Meant for circulation in India onlySlide # 22
• Open fresh Demat Account with a QDP under the QFI category
• Open fresh Broking Account under the QFI category
• Transfer funds from Designated Overseas Bank Account to Designated Local Bank Account
• Start investing (orders required to be routed through the QDP)
QFI vis-à-vis Sub-Account of FII
QFI Sub-Account of FII
Eligibility restricted to “Persons” (*) from 45 eligible countries
As per the comfort of the FII and its Regulator
One time Onboarding Fee of approx USD 100 levied by the QDP (includes costs)
SEBI Regn Fee of USD 1000, payable every 3 years
Investments restricted to Equity Shares, Corporate Bonds and Mutual Funds listed on Indian Stock Exchanges
Can additionally invest in Unlisted Equities, Corporate Bonds and Mutual Funds. Can also invest in G-Secs, Equity Derivatives, Interest Rate Derivatives and Perpetual Debt Instruments issued by banks in India (Tier Capital)
Meant for circulation in India onlySlide # 23
Cannot participate in the SLB Segment Can participate in the SLB Segment
QDP responsible for recovery of WithHolding Tax and payment to Govt by the stipulated timelines
Exempt from WHT on Capital Gains and permitted to remit sale proceeds after discharging applicable taxes on self assessment basis
( * ) As per IT Act (incudes Individuals, Corporates, Partnerships, Trusts and Body of Individuals)
Circulars & Frequently Asked Questions (FAQs)
Sr Date By Press Release / Circular / Notification / FAQ Link
1 09-08-2011 SEBI http://www.sebi.gov.in/cms/sebi_data/attachdocs/1312859496065.pdf
2 01-01-2012 MoF http://finmin.nic.in/press_room/2012/QFIS_invest_directMarketIndia.pdf
3 13-01-2012 SEBI http://www.sebi.gov.in/cms/sebi_data/attachdocs/1326453304731.pdf3 13-01-2012 SEBI http://www.sebi.gov.in/cms/sebi_data/attachdocs/1326453304731.pdf
4 13-01-2012 RBI http://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/IEPR1134Q0112.pdf
5 13-01-2012 RBI http://rbidocs.rbi.org.in/rdocs/notification/PDFs/APD130112FS.pdf
6 25-01-2012 SEBI http://www.sebi.gov.in/cms/sebi_data/attachdocs/1327491350046.pdf
7 29-05-2012 MoF http://finmin.nic.in/press_room/2012/Rational_QFI_Scheme.pdf
8 07-06-2012 SEBI http://www.sebi.gov.in/cms/sebi_data/attachdocs/1339064114781.pdf
9 16-07-2012 RBI http://rbidocs.rbi.org.in/rdocs/notification/PDFs/AE134SI16072012.pdf
10 18-07-2012 SEBI http://www.sebi.gov.in/cms/sebi_data/attachdocs/1342606633178.pdf
Meant for circulation in India onlySlide # 24
11 20-07-2012 SEBI http://www.sebi.gov.in/cms/sebi_data/attachdocs/1342784172262.pdf
12 14-08-2012 SEBI http://www.sebi.gov.in/cms/sebi_data/attachdocs/1345199799106.pdf
13 31-08-2012 RBI http://rbidocs.rbi.org.in/rdocs/notification/PDFs/AP21310812FSl.pdf
14 05-09-2012 SEBI http://www.sebi.gov.in/cms/sebi_data/attachdocs/1346838173182.pdf
15 24-12-2012 IT Dept http://www.incometaxindia.gov.in/archive/FAQs_for_QFIs_24122012.pdf
http://law.incometaxindia.gov.in/dittaxmann/circular/cir4_2007.htm
• Client onboarding (documentation and account set-up)
• Co-ordinate between QFI and Bank for inward and outward remittances
• Receive, validate and pass-on order to Broker for execution
Role of ISSL
• Receive, validate and pass-on order to Broker for execution
• Operate demat and bank accounts as a POA holder
• Carry out settlement functions (funds and securities)
• Settle brokerage and other statutory dues with the Brokers
• Compute and deduct WithHolding Tax, in case of sale transactions
• Pay WHT to Govt by 7th of following Calendar Month
• Monitor limits and carry out regulatory reporting functions
• Provide QFI with statements of transactions and other reports
• Safekeeping and Corporate Action Management
• Co-ordinate with CA/CPA for tax matters on behalf of QFI
Meant for circulation in India onlySlide # 25
• Servicing through 20 PAN India locations
• Largest Clearing Member on Equity Derivatives Segment of NSE
ISSL’s Strengths
• Clearing Agent for 1000+ Brokers across Segments
• Among the top 10 Depository Participants. Industry acknowledgedonline transaction platform ‘eKoole’
• Among the top 3 Non-AMC PMS Custodian
• Among the top 3 Trustees in India, largest in the AIF Segment
• One of the few Clearing Member (Retail) on the Cash Segment ofBSE and NSEBSE and NSE
• Largest facilitator of Lender transactions on the SLB Segment
• Neutral, non-conflict, non-compete entity
(No Broking or distribution activity – directly or indirectly)
Meant for circulation in India onlySlide # 26
ISSL’s Coordinates
Documentation : https://www.ilfsdp.com/QDPQFIDocumentation.aspx
Registered Address : IL&FS Securities Services Limited,Registered Address : IL&FS Securities Services Limited,
IL&FS House, Raheja Vihar,
Chandivali, Andheri East,
Mumbai – 400072, India
Phone Nos : (91) (22) 4249 3659 (Dilip) / 4249 3602 (Preeti)
Fax No : (91) (22) 2857 9571
Email Id : [email protected] and [email protected]
Branch Network : https://www.ilfsdp.com/QDPQFIFiles/Branch_List.xls
Website : http://www.issl.co.in and http://www.ilfsdp.com
Meant for circulation in India onlySlide # 27
31 Jan 2013
Meant for circulation in India onlySlide # 28