BSE sees QFI gateway in Facebook app

Japanese housewives regarded as savvy intnl investors who use low interest rates to borrow funds which they use to play global markets

Asia’s oldest exchange is looking to new age social media to bring in foreign retail investors to the Indian market through the qualified foreign investor route.

Ashish Kumar Chauhan, Managing Director and Chief Executive Officer of the exchange suggested that the application could be a gateway for Indian equities to reach out across geographies.

“Qualified Foreign Investors (QFIs) are a new investor class…connecting to them is a challenge since they are spread out all over the world. How do we market ourselves to a totally diverse segment…to the housewife in Japan…this platform could be a way,” he said.

Japanese housewives are regarded as savvy international investors who use the low interest rates in Japan to borrow funds which they use to play global markets.

Chauhan was speaking on the sidelines of a Facebook application which would allow investors to trade using a platform traditionally seen as a means to keep in touch with friends, play games; and share pictures and videos.  

Geojit BNP Paribas launched ‘Flip Social’, which it claims is India’s first stock trading application suite for Facebook.
AP Kurian, chairman of Geojit BNP Paribas Financial services stated that QFIs can be tapped through the platform.

“QFIs will need to do KYC and follow all the other requirements that they have. But once that is done, they can use this platform,” he said.

The QFI route allows retail participants from other countries to invest directly in Indian stock markets. The route has so far drawn Rs.764.5 crore in total investments spread across 64 stocks, according to data from depositories.

Interestingly, Geojit BNP Paribas has an extensive presence in the Middle East region via joint ventures and partnerships. Some of its partnerships include Barjeel Geojit Securities, its joint venture with the Al Saud group which is headquartered in Dubai.

There is also Aloula Geojit Capital Co., the joint venture with the Al Johar group in Saudi Arabia which is headquartered in Riyadh. It also has a presence in Oman and Kuwait.