Welcome to SMC QFI Services. Good Opportunity to the Stock markets The QFIs have been mandated to make investments in Indian Mutual funds and Equities.

Welcome to

SMC QFI Services

Good Opportunity to the Stock markets

The QFIs have been mandated to make investments in Indian Mutual funds and Equities through a SEBI approved Qualified Depository Participant (QDP).

“SMC is a SEBI registered Qualified Depository Participant (QDP).

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Contents

Introduction to QFI

Products offered to QFI

Account Opening Requirements

How QFI can invest in Indian equity market

Investment Opportunities for QFI

Compliance

Flow Chart of QFI Trading & Process

Order Instructions Formats

Primary Market - IPO/MF Process

List of Countries for QFI’s Investments

Sensex Performance

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Introduction to QFI

Qualified Foreign Investor (QFI)

QFI shall mean a person who fulfills the following criteria:

a) QFI shall include individuals, corporates, groups or associates.

b) He is a resident of a country that is member of FATF (Financial Action

Task Force)

or a member of a group which is a member of FATF and;

a) Resident in a country that is a signatory to IOSCO’s MMoU or a

signatory of a

bilateral MOU with SEBI.

a) Such a person is not registered with SEBI as FII or sub-account or

Foreign Venture

Capital Investor.

Securities Exchange Board of India (SEBI) and Reserve Bank of India (RBI) vide

Circular No. CIR/ IMD/FII&C/3/2012 and Circular A. P. (DIR Series) No. 66dated 13th

January, 2012 respectively have allowed Qualified Foreign Investors (QFIs) to invest

directly in the equity share capital of the listed companies in addition to investment in

equity and debt schemes of Mutual Funds by opening a demat account with SEBI

registered Qualified Depository Participant.04/10/23 4

Products offered to QFI

Earlier only FIIs / their sub-accounts and NRIs were allowed to directly

invest in Indian equity market. In the new dispensation, a large number of

Qualified Foreign Investors (QFIs), in particular, a large set of

diversified individual foreign nationals and corporate who are desirous of

investing in Indian equity market can invest on fully repatriable basis in:

Equity Secondary Market – Exchange Traded securities

Mutual Funds

Equity Primary Market – IPO and FPO

Listed Corporate Debts

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Accounts Opening Requirements

Following documents are required for opening the Equity Trading Account.

o Copy of Passport for individual

o Registration Certificate for non-individual

o Foreign Bank Account Statement (in original)

o Overseas Address Proof

*All self attested documents should be attested by prescribed Authorities also.

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How QFI can Invest in Indian equity market

QFIs may invest in the primary and secondary markets on repatriable basis after opening a demat account with QDP (Qualified Depository Participant)

QFI shall make Investments through his offshore bank account in a freely convertible foreign currency.

QFI may open a single non interest bearing Rupee account with a AD category – I bank in India.

QFI shall make all purchase and sale transaction through the QDP only.

QFI may engage one or more SEBI registered stock broker and he shall be subject to the extant security laws, rules, regulations, circulars etc.

QFI may make divestment by sale on exchanges and repatriation of proceeds from the QFI”s Rupee Indian Bank Account to the QFI’s offshore Bank Account.

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Investment Opportunities for QFIs

India is world’s largest democracy with a very sound Legal and Regulatory system.

In the last five years FDIs and FIIs have invested over $320bn in Indian market.

Qualified Foreign Investors (QFIs) have now been allowed to invest in India in its primary and secondary markets on repatriable basis by simple opening a demat account with QDP like SMC Global Securities Limited.

QFI can now directly invest in Indian equity market and can get the edge from the Indian financial growth of about 7-8% of GDP.

With two major National Stock Exchanges BSE and NSE and more than 3000 traded securities India has huge investment opportunity.

Young Population: More than 60% of the population less than 35 years of age.

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Compliance

QFI will have to designate his offshore bank account through which all fund transactions shall take place.

QFI shall buy or sell through the same QDP only. Only one DP account can be had at a time.

QFI shall be subject to laws and regulations of the host country as well as of Indian Laws and Regulations.

QFI shall not make short selling or non-delivery trades like future and options. QFI transactions shall be cleared and settled on gross basis.

QFI quota for all QFI’s taken together in a company’s capital is 10% of the paid up capital. Any excess shall have to be mandatory divested on LIFO basis.

Individual QFI quota is 5% of the paid up capital of a company. No QFI can exceed this limit.

Same set of end/ultimate owners can not have QFI accounts under different corporate edifices.

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Charges Schedule

• Account opening fee `5000• Brokerage `0.80 on turnover• QDP charges `0.20 on turnover `100 subject to minimum brokerage• QDP AMC `2500• Bank reporting charges `100 per script

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Flow chart of QFI trading & Process

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QFI’s Foreign Bank A/c

QFI’s Indian Rupee Bank A/c

QFI’s Trading and Demat Account

- Transaction Process

QFI will remit funds in SMC’s pool bank account and will issue instructions for purchase of named shares with type of orders and validity in prescribed format.QFI will remit funds in SMC’s pool bank account and will issue instructions for

purchase of named shares with type of orders and validity in prescribed format.QFI will transfer funds from his single Rupee bank account to QDP & will issue

instructions for purchase of shares in prescribed format.QFI will transfer funds from his single Rupee bank account to QDP & will issue

instructions for purchase of shares in prescribed format.

SMC-QDP will confirm receipt of funds and forward purchase instructions to SMC- Broking Division for purchase in QFI’s trading Account.

SMC-QDP will confirm receipt of funds and forward purchase instructions to SMC- Broking Division for purchase in QFI’s trading Account.

SMC-Broking Division will send digital contract notes to the QFI. SMC-QDP will settle the Pay-in of funds with SMC-Broking Division for QFI’s buying.

SMC-Broking Division will send digital contract notes to the QFI. SMC-QDP will settle the Pay-in of funds with SMC-Broking Division for QFI’s buying.

SMC – Broking Division will place the orders as per the QFI’s instructions. And on order matching, SMC – Broking Division will inform the client & demand funds from SMC-QDP as per Contract Note.

SMC – Broking Division will place the orders as per the QFI’s instructions. And on order matching, SMC – Broking Division will inform the client & demand funds from SMC-QDP as per Contract Note.

SMC-QDP will ensure that Securities payout as received from Exchanges credited in the QFI’s DP Account on T+2 and send e-confirmation to the client.

SMC-QDP will ensure that Securities payout as received from Exchanges credited in the QFI’s DP Account on T+2 and send e-confirmation to the client.

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- Transaction Process

QFI can sell the DP stocks in BSE or NSE.

QFI can sell the DP stocks in BSE or NSE.

SMC-Broking Division will place orders as per QFI’s instructions and confirm to SMC-QDP through online interface / email. After execution of the orders, the

SMC-Broking Division will send digital contract notes to the QFI.

SMC-Broking Division will place orders as per QFI’s instructions and confirm to SMC-QDP through online interface / email. After execution of the orders, the

SMC-Broking Division will send digital contract notes to the QFI.

QFI will instruct SMC-QDP, in prescribed format, to sell any shares held in the DP A/c. SMC – QDP will verify the availability from QFI’s DP A/c and forward

instructions to SMC-Broking Division.

QFI will instruct SMC-QDP, in prescribed format, to sell any shares held in the DP A/c. SMC – QDP will verify the availability from QFI’s DP A/c and forward

instructions to SMC-Broking Division.

SMC–QDP will ensure that Funds payout as received from SMC-Broking Division is credited in the Rupee Pool A/c of QFI & send e-confirmation to the clients.

SMC–QDP will ensure that Funds payout as received from SMC-Broking Division is credited in the Rupee Pool A/c of QFI & send e-confirmation to the clients.

SMC–QDP will settle the Pay-in of securities with SMC Broking Division for the QFI’s selling.

SMC–QDP will settle the Pay-in of securities with SMC Broking Division for the QFI’s selling.

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Order Instruction Slip (OIS) from QFI to QDP

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OIS (from SMC-QDP to SMC-Broking Division)

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Trade Confirmation from SMC-Broking Division

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Primary Market IPO /MF Transaction Process

QFI may make investments in IPO & Mutual Funds by giving instruction to QDP.

QFI may make investments in IPO & Mutual Funds by giving instruction to QDP.

SMC-QDP shall apply on QFI’s behalf and submit documents and funds to the designated bank.

SMC-QDP shall apply on QFI’s behalf and submit documents and funds to the designated bank.

The IPO allotment would directly come into QFI’s DP Account and Mutual Fund Units would be allotted to QFI’s Folio (Indirect route ) or to be transferred to

QFI’s DP Account if it is purchased through Direct mode.

The IPO allotment would directly come into QFI’s DP Account and Mutual Fund Units would be allotted to QFI’s Folio (Indirect route ) or to be transferred to

QFI’s DP Account if it is purchased through Direct mode.

Mutual fund units can be redeemed but cannot be traded. Mutual fund units can be redeemed but cannot be traded.

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List of countries for QFI’s Investment

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Sensex Super Performer in past decade

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SENSEX `Super Performer in past decade

• 01-Jan-01 3955.08

• Current 16668.01

• Return +321 %`SENSEX P/E Ratio Trading at attractive valuations

Trading below historic average P/E multiple

Sensex P/B Ratio Trading & Market Cap

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SENSEX P/B Ratio Trading at attractive valuations

Market Cap to Bank Deposits Indicate under valuationsTrading below historic average Market Cap / Bank Deposits

Trading below historic average P/B multiple

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Disclaimer

All stock market based investment is unpredictable and associated with risks. Opinions, recommendations, are only advisory in nature, given with the understanding that the receiver acting on this information assumes all risks involved. QFIs using the process and information contained herein are solely responsible for their actions and the instructions they give to the Broker and Depository. Using our services is at QFI’s sole discretion as per QFI guidelines. SMC does not accept any liability whatsoever under any circumstances for use of its QFI services that indicates your acceptance of our disclaimer.

“SMC shall in no way be responsible for delays in receiving SMS/mails because of service provider’s delay or force-majeure events. We cannot assume legal liability for any errors or omissions.”

Contact:Mr Ajay Garg, DirectorSMC Global Securities Ltd.Cell: [email protected]@smcindiaonline.com

Delhi - Corporate Office:11/6B, Shanti Chamber, Pusa RoadNew Delhi 110005, India

Mumbai - Regional Office:Dheeraj Sagar, Ist Floor, Opp. Goregaon sports club,Link Road, Malad (West), Mumbai 400064, India

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