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Scheme for Foreign Nationals to invest in Indian Securities

Till 2011, portfolio investment that is investment in Indian stocks was open only to NRIs and Foreign Institutional Investors (FIIs). However, from 2012, a new category known as Qualified Foreign Investor (QFI) has been introduced whereunder even Foreign Nationals can also invest in listed Indian equities subject to certain conditions. The process requires registration with Qualified Depository Participants.

Tax treatment of investment in listed securities

Long Term Capital Gains

Long Term Capital Gains are tax exempt if security is held for a period of more than 12 months and if sold on Stock Exchange.

Short Term Capital gains on listed security are subject to tax @ 15%.