>  Eligible Foreign Investor (EFI) FAQ
Eligible Foreign Investor (EFI) FAQ

Any foreign entity which is not registered with Sebi as FPI in any of the 3 categories (I, II, and III) is known as Eligible Foreign Investor (EFI)
EFI can trade on the derivatives on the following products at India International Exchange
  • Equity Index Futures & Options
  • Single Stock Futures & Options
  • Global Currency Futures & Options
For complete list of products, please refer at the following link:
https://www.indiainx.com/static/productsnapshot.aspx
Following are the benefits which an EFI / FPI can avail while trading in India International Exchange:
  • NO Security Transaction Tax (STT)
  • NO Commodity Transaction Tax (CTT)
  • NO Long Term Capital Gain (LTCG) tax
  • NO Stamp duty
  • 22 hours access - opportunity to react to change through investment / hedge / arbitrage across globe and asset class
  • Avoid currency risk (transaction and settlement in USD)
  • Competitive pricing compared to leading global exchanges
  • Capital conservation – single market access across products with cross margin benefits available at India INX
  • Comprehensive price and transaction data available real time
No, only the Unique Client Code (UCC) of the EFI will have to be uploaded by the member of India INX before commencing of trading on behalf of EFI For more information please refer Sebi Circular at the following link:
http://www.sebi.gov.in/legal/circulars/jul-2017/guidelines-for-participation-functioning-of-eligible-foreigninvestors-efis-and-fpis-in-ifsc-amendment_35287.html
All the basic documents which are required by Category III FPI, need to be submitted by an EFI to the member of India International Exchange in order to open an account. It mainly includes:
  • Certificate of Incorporation
  • Articles and Memorandum of Association
  • Proof of Address
  • Bank Account Details
  • Board Resolution stating that entity is allowed to trade
  • Shareholding Details
  • Authorized Signatories Details
  • PAN
  • Financials etc
Yes, an EFI need to have a Permanent Account Number (PAN) before they can start trading in India International Exchange
No
For more information, please click on the following link:
http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions

EFI can approach any of the member of India International Exchange for trading. The list of Members are available in the following link:
https://www.indiainx.com/markets/DirectoryMembers.aspx
Currently only derivatives are available on India International Exchange and it is settled in cash. So there is no requirement of opening a Demat account
All the contracts listed in India International exchange are in USD and settlements are also being done in USD. So an EFI don't have to worry about fluctuation in INR, which is the case in Indian domestic exchanges
EFI can remit fund via SWIFT from their existing Bank account to the bank account of the member which will be at International Financial Service Centre (IFSC)
On the basis of the request from EFI, member will remit the fund via SWIFT from their bank account operated at International Financial Service Centre (IFSC) to the bank account of the EFI. Member will only transfer the fund to the bank account from which they had received the margin from the EFI
Yes, all the Prevention of Money Laundering Act (PMLA) guidelines are strictly required to be followed by the member while on boarding the EFI as a client on India International Exchange
No, there is no capital account restriction applicable at the exchanges operating in International Financial Services Centre (IFSC)
Yes, Singapore International Arbitration Centre (SIAC) has their presence in International Financial Services Centre (IFSC)