FIIs must use special non-resident rupee bank accounts, in order to move money in and out of India.
FORBES: The ABCs Of Investing In India
Other FIIs must invest a minimum of 70% of their investments in equity.
As per Indian regulations, participatory notes representing underlying Indian stocks can be issued offshore by FIIs, only to regulated entities.
For making portfolio investments in India, one should be registered either as a foreign institutional investor ( FII) or as one of the sub-accounts of one of the registered FIIs.
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