FPI INVESTMENTS - IL&FS SECURITIES SERVICES LTD. Securities Services Limited
A GENDA Broad Economic Outlook 3 About IL&FS 5 About IL&FS Securities Services Ltd. 7 IL&FS Offering For Foreign Investors 9 FPI Regime 11 Operational Process 15 WHY IL&FS Securities Services Ltd. 21 Securities Services Limited
BROAD ECONOMIC OUTLOOK Securities Services Limited
POPULATION GDP GROWTH RATE B ROAD E CONOMIC O UTLOOK BENEFICIAL ACCOUNT HOLDER (NSDL) INDIA GROWTH STORY 14.00 in Million(number) One of the fastest growing economies in the world ~ GDP 13.50 Annual Growth Rate 7% 13.00 12.50 12.00 Robust savings ~ over 22,000 INR Billion 11.50 11.00 2011-12 2012-13 2013-14 Apr 13 - Apr 14 - Dec. 13 Dec. 14 Huge potential for growth/greater penetration particularly in many sectors, particularly infrastructure, consumer products, INIDA LABOR FORCE PARTICIPATION RATE financial services Financial inclusion – policy drive of the Indian Government. FII/FPI Investments - Strong buyers of Indian equities over past few years Source: www.tradingeconomics.com & www.sebi.gov.in Securities Services Limited
ABOUT IL&FS Securities Services Limited
B USINESS S UMMARY IL&FS Financials (INR Million) Corporate Profile Description 2013 2014 2015 1,168 1,181 1,312 Equity Capital Net-worth 27,433 38,669 50,000* Financial Infrastructure Ports Power Transportation Services Detailed Financials at: http://www.ilfsindia.com/Financials.aspx?id=8&cid=2 *approximate figure Shareholders Summary UTI-Unit Linked Founded in 1988, Institutional Pedigree with India Discovery Central Bank of Insurance Plan – Fund Limited , Global shareholders India , 7.67 UTI Asset State Bank of 0.86 Management Co India , 6.42 Pvt Ltd , 0.82 Housing Dev. IL&FS has a Net-worth of Rs 38.66 billion and a Finance Corpn. Life Insurance total asset base of more than Rs 123 Billion Ltd. , 9.02 Corporation of India , 25.34 Has business interests in diverse sectors, such as infrastructure, financial services, ports, power, private equity and transportation Orix Corporation, Exclusive linkages with external stakeholders Japan , 23.54 including the government Abu Dhabi Investment Authority , 12.56 ILFS Employee Trust & Others , 13.77 Securities Services Limited
ABOUT IL&FS SECURITIES (ISSL) Securities Services Limited
Products & Services Shareholders B USINESS S UMMARY ORIX Croupier Corporation, Prive IL&FS Japan, Mauritius, Employee 4.75 5 Welfare Trust, Product & Services Offering Additional Services 9.01 IL&FS & Others (Mr Vibhav 81.24 Kapoor, Mr Ramesh C Depositary Services Bawa & Mr K Escrow Management Ramchand), 0 Loan Against Share Summary Clearing – Equity / Debt IL&FS Securities Services Ltd (ISSL) is the subsidiary / Derivatives * of IL&FS, part owned by Foreign Investors Loan book ISSL is having a custody presence in India for more administration than 17 years Designated Depositary ISSL is the largest Professional Clearing Member in Participant – FPI India (for Equity Derivatives). ISSL is the largest clearer for the Stock Lending and Securities Lending & Borrowing (SLB) segment in India Borrowing * Broking Back-Office Strong systems and IT resources in-house outsourcing Leader in domestic Hedge Funds (end to end Custodial Services services – custody/clearing/fund accounting/trustee) National Pension Scheme Trustee Services Fund Accounting Securities Services Limited
IL&FS OFFERING FOR FOREIGN INVESTORS Securities Services Limited
F OREIGN I NVESTOR O FFERINGS WE OFFER YOU END-TO-END SOLUTIONS Foreign Portfolio Investment Foreign Direct Investment Foreign Venture Funds In-House Expertise Our Partner Eco-system Broking Partners PAN Custody We work with all leading brokers including Algo / HFT specialists Processing Legal / Tax Advisory Demat Derivatives To cater to your global fund structuring as well as India taxation advisory Account Clearing CPA Partners Local CPA is mandatory, you can appoint from our panel or your own CPA Domestic Stock Trustee Lending Portfolio Advisory Looking for Indian Markets’ expertise – we can introduce Advisors to you Escrow Global Banking Partners Services Fund Services We work with leading domestic and foreign banks for your Banking needs ISSL already has a critical mass of FPI clients across geographies. We understand your need for fast turn-around for your India registration and account setups. We have created a comprehensive eco-system of services to create a seamless experience for You! Securities Services Limited
FPI REGIME Securities Services Limited
Items Features description FPI Eligibility : The Applicants FPI R EGIME SEBI Mandatory; Due diligence and registration will be done by Designated Is a person not resident in India Registration Depository Participant (DDP). , Fees USD 1000 per year fee for Cat II, USD 100 fee for Cat III Is a resident of a country whose securities market regulators is a signatory to SEBI MoU /IOSCO’s MMoU Custody A/c Mandatory PAN No. / Mandatory to obtain PAN Card, file tax returns in India Is resident of a country meeting FATF requirements CA If being a Bank, should be resident of a country whose Central Bank A/c Foreign currency + INR account allowed Bank is a member of the Bank for International Settlements Demat One per Depository allowed Brokers Multiple trading members allowed, order placement directly with Is not a Non Resident Indian (NRI) Brokers Is legally permitted to invest in Securities outside his country Investment Listed securities only permitted; Infra bonds allowed in unlisted also • Equity, Mutual Funds s Types • Debt (Government, Corporate) Is authorized by its MoA & AoA (or equivalent document) • Equity, Currency and Interest Rate Derivatives Has sufficient experience, good track record, is professionally • Investment in the Equity Shares of a Company by a Single FPI or a Investment competent, financially sound Limits Group of FPIs shall be < 10% of the Issued Capital of the Company. generally good reputation of fairness and integrity • Government Debt: USD 31 Bn, Corporate Debt USD 50 Bn • Separate position limits in the Derivatives Does not have a “opaque” structure (protected / segregated cell company or similar where Taxation Standard tax rates for all categories, no TDS ultimate beneficial owners are ring fenced from each another) ODI/P- Categories I and II FPIs may issue, subscribe to or otherwise deal in ODIs notes • Government and Government • Regulated broad based funds such as Mutual • All other eligible foreign investors not eligible related foreign investors such as Funds, Investment Trusts, Insurance under Category I and II such as Endowments, Foreign Central Banks, Charitable Societies/Trust, Foundations • Regulated entities such as Banks, Asset Governmental Agencies, Management Companies, Investment • Corporate Bodies Sovereign Wealth Funds Managers/Advisors, Portfolio Managers etc. • Trusts FPI Categories • International/ Multilateral • Broad based funds whose investment manager is • Individuals Organizations/ Agencies appropriately regulated • Family Offices • University Funds and Pension Funds I II III Securities Services Limited
FPI R EGIME F EATURES : I NVESTMENT T YPES Equity Debt Derivatives Shares, Debentures and Warrants, - Dated Government Securities - Equity listed or to be listed (both Primary / - Commercial Papers issued by an - Interest Rate Secondary) Indian Company - Currency - Units of domestic Mutual Fund - Rupee denominated Credit Enhanced Schemes, whether listed or not Bonds - Units of schemes floated by a - Security Receipts issued by Asset Collective Investment Scheme Reconstruction Companies - Derivatives traded on a recognized - Perpetual Debt instruments and debt Stock Exchange capital instruments, as specified by RBI - Indian Depository Receipts (IDRs) from time to time - Other instruments as permitted from - Non Convertible Debentures / Bonds time to time issued by an Indian Company in the Infrastructure sector - Non Convertible Debentures / Bonds issued by NBFCs categorized as ‘Infrastructure Finance Company’ by RBI - Rupee denominated bonds or units issued by Infrastructure Debt Funds - Such other instruments specified by SEBI from time to time Securities Services Limited
FPI / FII I NVESTMENT D ETAILS India FPI/FII Net Investments - INR Million Equity Debt Total 2008-09 (477,060) 18,950 (458,110) 2009-10 1,102,210 324,380 1,426,580 2010-11 1,101,210 363,170 1,464,380 2011-12 437,380 499,880 937,260 2012-13 1,400,330 283,340 1,683,670 2013-14 797,090 (280,600) 516,490 2014-15 1,113,330 1,661,270 2,774,610 2015-16 (296,960) 75,590 (221,370) Securities Services Limited
OPERATIONAL PROCESS Securities Services Limited
Start I: A CCOUNT O PENING F LOW 14 Days PAN Overseas KYC / FPI Registration 3 Days Bank A/c Funding Bank A/c CP Code (EQ) 5 Days Remittance DP A/c CP Code (Der) 3 Days Trading A/c 2 Days Orders • Custodian would facilitate the entire account opening process • Expected timelines for entire setup and go live are about 1 month Securities Services Limited
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