The government will come out with the framework for qualified institutional investors (QFI) to get into Indian equity and debt in a week. Easy entry and exit options for this class of investors, which has since recently been allowed to invest in Indian markets directly will be part of the framework.
The government will also clarify on the tax liability (short-term capital gains) of these investors as they make capital gains out of the investments in India.
QFI will not be permitted to invest in India through other routes like FIIs, P-note, NRIs and overseas derivative instruments, sources said.
A senior official requesting anonymity said that the investors who come in through the QFI route route cannot ?indirectly? channelise investments into the country through any other route. The ministry which has just concluded a five day long road shows to woo investors in the Gulf region is working out guidelines for an easy entry and exit for the route, strongly advocated by investors in the Middle East.
Earlier, R Gopalan, secretary, Department of Economic Affairs said that in case NRI wants to invest through QFI route they will have to ‘freeze’ their other accounts.