Citi Facilitates the Largest QFI Investment in India for Sanlam

Mumbai - March 11, 2013 – Citi India today announced it acted as a Qualified Depository Participant (QDP), custodian as well as the execution broker for an investment made by Sanlam, one of South Africa’s largest financial services groups through the Qualified Foreign Investor (QFI) scheme. The investment of around USD 111 million is the largest investment made by a QFI in India since the easing of QFI regulations for investing in Indian equities over the past few quarters.

The transaction, the first of its kind supported by a foreign bank custodian in India, reinforces the efforts of the Government of India (GOI) to allow QFIs to directly invest in the Indian equity market, with Sanlam making an equity investment in a listed stock in India through this scheme.

Speaking on the timely execution of the deal, Gerrit Van Heerde, CFO of Sanlam Emerging Markets, says, “This was an important investment in a group company of one of our long standing partners in India. The investment made through the QFI scheme ably supported by Citi India, demonstrates the capabilities of its people and platform in making an extremely difficult deal become reality. The advantages of the QFI scheme are immense in time sensitive deals as this one.”

Speaking on the success of the deal, Debopama Sen, Country Head, India of Securities and Fund Services for Citi, says, “Citi continues to actively engage in discussions with regulators and investors across diverse forums, highlighting the multiple benefits of a simplified QFI framework as one of the preferred investment routes into the Indian markets. Sanlam’s investment through this route is extremely encouraging and we look forward to further investments from other leading investors in our portfolio using the simplified QFI route.”

Commenting on the investment made by Sanlam, Gagan Rai, Managing Director & CEO, National Securities Depositary Limited says, “Citi was among our first custodian partners who have been at the forefront of educating investors on newer formats of investment like the recently simplified QFI scheme. As the Central Depository, we understand Sanlam’s recent investment of around USD 111 million is the single largest QFI investment in direct equity in India post the several amendments made to the QFI regulations over the last few quarters. Post this transaction current investments stand at approximately INR 6.8 billion (USD 126 million) in Indian equities and INR 4.4 billion (USD 82 million) in Fixed Income though this investment route. We are confident that investments will significantly increase over the year as investors understand the many benefits of investing as a QFI.”

The QFI framework simplified India access for foreign investors who are members of the Financial Action Task Force (FATF) jurisdictions, allowing them to invest in India without being registered with the Securities and Exchange Board of India (SEBI) or meeting the set eligibility criteria for a Foreign Institutional Investor or Sub-Account in India. To encourage the use of this investment route, Citi has been in active discussions with various potential QFIs and regulators, to simplify the requirements further and attract fresh investments under this scheme. The revised guidelines announced by the GOI permits QFIs to open a segregated bank account in India and allow QDPs to rely on authorized intermediaries like Global Custodians to verify certain documents, allow PAN card copy to be verified online, among others. These changes in regulations are expected to widen the class of foreign investors and deepen the Indian capital market, thereby helping reduce market volatility in the equity markets.

Citi OpenInvestorSM is the investment services solution for today’s diversified investor that combines specialized expertise, comprehensive capabilities and the power of Citi’s global network to help our clients meet performance objectives across asset classes, strategies and geographies. Citi OpenInvestorSM provides institutional, alternative and wealth managers with middle-office, fund services, custody, and investing and financing solutions that are focused on their specific challenges and customized to their individual needs. For more information, visit

Citi India, with a client base that has more than doubled in the last five years across multiple segments, has been Top Rated in the prestigious “Leading Clients” category of Global Custodian’s Agent Banks in Emerging Markets Survey for the last four years and in 2012 was awarded “Best Direct Custody in India” for the third consecutive year by Asian Investor. Citi has emerged as one of the most dominant players in India across custody, as well as professional third party clearing services for exchange traded equity F&O, and currently has over USD 100 billion in assets under custody. In 2012, Citi was the first custodian to offer securities lending services on the National Stock Exchange (NSE) in India.


About Citi
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

Additional information may be found at | Twitter: @Citi | YouTube: | Blog: | Facebook: | LinkedIn:

About Citi Transaction Services
Citi Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 95 countries, Citi Transaction Services supports over 65,000 clients. In 2012, Citi held on average $428 billion in liability balances and $13.2 trillion in assets under custody.