Facilon Services Private Limited

In their own words

Facilon Services Private Limited (‘Facilon’) will be providing a wide range of solutions to securities market service providers and their potential clients by bridging the gap between them and thereby facilitating the clients’ access to the securities markets through a dedicated platform. Background India is currently one of the top destinations for investment globally. The Government of India has been proactive in enhancing the attractiveness of India as a global business destination by introducing new laws and policies and ensuring their implementation. As per the extant laws, any Foreign Investor (non-NRI, non-OCI) who wishes to directly invest in listed equity and debt securities in India can do so through the Foreign Portfolio Investment (FPI) route. However, the current procedures to access the FPI route and other permissible routes are often perceived to be convoluted and complex for an investor. In addition, NRIs/OCIs find it difficult to open accounts with brokers in India and access the India market even though there are many attractive investment opportunities designed for this investor class. The serious and committed investors visit India to set up these relationships. Challenges Although the Indian regulatory framework permits a foreign investor to have a direct access to India’s capital market but the unique procedures in India related to KYC, FPI Registration, client on-boarding by local custodians and intermediaries and tax payment documentation/requirement before repatriation and annual tax filings inhibit the ability for these investors to get direct access efficiently. Clients of service providers (e.g., brokers, custodians) including NRIs/OCIs located in overseas jurisdiction from the client often lack consistent updates on KYC and onboarding progress. Client interest diminishes when KYC and onboarding processes encounter delays. Clients lack clear understanding regarding the necessary documentation for the Products & Services provided by Service providers, as well as the designated submission locations for said documentation. Given the dynamic nature of India’s regulatory eco system, getting clarity on the exact requirement is sometime a challenge Solution through innovative service offering Facilon is a technology enabled service for such Investors and their International Asset Managers or International Brokers. Our role is that of a facilitator to assist investors in liaising/engaging with intermediaries like custodians and brokers for all the three stages of pre-trading - KYC procedures, Regulatory Registration and On-boarding as well as acting as a conduit for post-trading activities. Our service offering will commence with enabling a smooth client onboarding and proceed by providing Reports and updates from Brokers, custodians and tax consultants. Post trading activities such as settlement and corporate action instructions to custodians, daily reporting on cash and securities balances to clients, reconciliation and exception management will also be some of the features of our software solution. Facilon brings the investor a service which is comparable to that offered to large institutional clients by their Global Custodians and Service Providers We are creating an infrastructure which can cater to any investor who is eligible to invest in any foreign jurisdiction. It is our understanding there is no such solution available for the above-mentioned investor class in many overseas jurisdictions which are identity-based markets and Facilon has an opportunity to and will create service standards and benchmarks Opportunity Facilon will empower Foreign Asset Managers and Foreign Brokers to provide their clients Direct Access to the India market. Once Direct Access is enabled, the client can: • Take an informed decision while selecting the investment route applicable • Trade on the SEBI recognized Exchanges for listed stocks and derivative instruments, • Participate in IPOs, FPOs, OFS and similar products • Hold securities in their own name at the depository, • Have access to brokers and their research on India and • Also vote on the resolutions of the various companies that they are invested in. Facilon will also enable NRIs/OCIs as well as potential FPIs to connect with service providers in the India market. About Us We are a team of a highly qualified and experienced securities services professionals, adept in product development, product management, foreign investor client management, network management, cash management and foreign exchange management for foreign investors, capital market operations and fund accounting. We are well versed with current market practices and regulations applicable in India as well as international jurisdictions. For further insight about our solutions, please contact Suneet Luthra ([email redacted]) or Jaydeep Jayakar ([email redacted])

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