India

Services for Foreign Institutional Investors 


A foreign financial institution which intends to invest in the securities of Indian companies through the Indian stock market is required to register in India with the Securities and Exchange Board of India (SEBI) as a Foreign Institutional Investor (FII). A FII can invest its proprietory funds and/or its client/broad-based funds registered as sub-accounts with SEBI.

 

FIIs are granted registration after considering factors like track record, professional competence, financial soundness, reputation, regulation by an appropriate foreign regulatory authority such as a securities regulator, central bank or government ministry, agency or department, etc.

In April 2000, a dedicated cell having a vast and varied experience was set up in KPMG in India to provide focused services to FIIs. Close co-ordination with the vast network of member firms of KPMG International Cooperative enables us to arrive at the feasible approaches in relation to the ownership structure, the investing jurisdiction et al. Awareness about the needs of the FII clientele and contemporary knowledge of the latest regulations in a wide array of jurisdictions assist in providing a tax efficient structure for investments to the foreign entities.

Investment Structuring

Profitability, to a very great extent, depends on the ability of the investment structure to control the revenue flows in a cost efficient manner and at the same time increase returns in a tax efficient manner.

 

Essentially, this would depend on the interplay of several variables such as the jurisdiction of the investing entities, Indian tax treaty network, foreign tax credits, protection available to investments, etc.

 

Certain off-shore locations have favorable tax treaties with India. Investment vehicles backed-up by business justifications from such locations, result in lower or no tax costs.


We assist clients in identifying the tax issues, both domestic and international, impacting the investment structure and on going investment transactions. 

 

We also advise on the ownership structure and the legal structure eligible to avail the tax treaty benefits.

Tax compliance related services

Our compliance services range from assisting in obtaining a Permanent Account Number, computation of income, issuance of certificate advising tax liability on capital gains arising from the transfer of securities, dividends and any other income. We also assist in preparation and filing of a return of income, attending and making submissions to the Indian tax authorities during the audit of the Indian tax return and preparation of appeals. Further, we also assist in preparation and filing applications seeking an advance ruling with the Authority for Advance Rulings.

Transaction Advisory services

This includes advisory services ranging from defining the tax on financial instruments and products to investment restrictions on securities, etc.

Registration with regulatory authorities

We also offer services relating to registrations or approvals with SEBI or the Reserve Bank of India. These services include evaluation of the entities eligible to register, a review of the application and the documents attached to it, etc. We also assist in renewal of such registrations or obtaining periodical approvals

Key Service offerings