Investments into Indian equities, bonds and mutual funds by foreign nationals under the new Qualified Foreign Investor (QFI) route are likely to cross $10 billion mark in the next two years.
Speaking at a seminar organised in connection with the launch of QFI service in Dubai, P.K. Sajith Kumar, CEO and Director, IBMC Group and JRG International, said QFI has the potential to match or even overtake the current volume of FII investment volumes into the Indian markets in the next two to three years. Overseas investments into Indian stock markets in 2012 has touched $12 billion so far including more than $1 billion in August this year alone, he added.
QFIs, so far, have bought just Rs 35 crore worth of Indian shares.
Ashishkumar Chauhan, CEO, BSE, said QFI hold a lot of potential for Indian markets. QFIs would broad-base the capital flow and further deepen liquidity for Indian markets.
P.S. Reddy, CEO and Managing Director, Central Depository Services (India) Ltd said QFI route is opened up for those who want to have the benefit of India’s growth. There is no better region than Gulf region which is more inclined towards India as an investment destination.