An FII is an institution established or incorporated outside India, which proposes to make investments in securities in India and regulated under the strict provisions of the SEBI. Sub-Account on the other hand means ‘any person resident outside India, on whose behalf investments are proposed to be made in India by a FII and who is registered as a sub-account under these regulations.’
A foreign investor who does not wish to go through the full administrative hassle of applying and registering as an FII, may invest in India as a sub-account. It includes foreign corporates, foreign individuals and institutions, sovereign wealth funds, funds or portfolios established or incorporated outside India.
AfrAsia Bank has also entered into a strategic tie up with India-based ICICI Bank for providing custodial services in India to its clients.
James Benoit, CEO of AfrAsia Bank, said: “We are very pleased to have received SEBI’s approval and license. The Banking Industry is amongst the fastest growing sectors in the country and International business presents an interesting opportunity.
“It is not yet a crowded investment market here and we think that there is great merit in delivering solutions rather than just launch products. It is this investor centric approach built on customer oriented communication, long term relationships and enduring wealth creation that will seek to differentiate AfrAsia Bank. This is an important step in our strategy to tap the Indian market.”
