Even as the government is wooing investors in the Middle East by conducting roadshows,its regulatory agencies are yet to set processes in place to remove bottlenecks and facilitate fund flows.
According to a source who was part of the roadshow team,while the government is working on ways to ease the procedure to get a PAN card for Qualified Foreign Investors (QFIs),the Reserve Bank of India has yet to issue a circular to the banks allowing them to open QFI bank accounts.
QFIs in India need to have a PAN and a bank account and the cumbersome documentation process involved in getting a PAN has deterred many.
The government is working to ease the process for them to get a PAN but RBI has yet to issue a circular to banks to open bank accounts for QFIs, said the source.
In a circular issued by the finance ministry on May 29,the government allowed QFIs to open bank accounts in India.
It has now been decided to allow QFIs to open individual non-interest bearing rupee accounts with Authorised Dealers banks in India for receiving funds and making payment for transactions in securities they are eligible to invest, said the circular.
However the RBI is yet to issue a direction to banks. These guidelines under FEMA,1999 are being finalised in consultation with the government and Sebi and will be issued in due course, said the RBI in an e-mail response to The Indian Express.