Foreign Portfolio Investors/Investment
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Transcript of Foreign Portfolio Investors/Investment
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Category of FPIs
FPIs
(a)Category I
(b) Category II (c) Category III
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Category I includes foreign investors related with
the government such as central banks, government agencies, sovereign wealth funds;
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Category II Includes regulated entities like banks,
assets management companies, investment managers etc. and broad-based funds, which may be regulated such as mutual funds, investment trusts etc. or non-regulated
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Category III includes investors, which are not
covered under categories I and II.
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Instrument available for Investment
FPI Regulation 21,FPIs can invest :-listed or to be listed shares, government securities, units of mutual funds or collective investment schemes, treasury bills, corporate debt and Indian depository receipts. For foreign corporate and foreign individuals for 10% of a company’s total issued capital. Also, investment in equity is now restricted to below 10% company’s total issued capital.
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Investment in unlisted equity share
FPI Regulations prohibit investments in unlisted equity shares of a company but the existing investments in such securities in which investment is now prohibited can be kept as such till the sale of such securities
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FPI Regulation 22 has brought a major change relating to issuance of Offshore Derivative Instruments
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the applicant must be a non-resident in India but non-resident Indians are specially prohibited
Eligibility criteria for FPIs
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the applicant is required to be a resident of a country which meets the following criteria-
I) its securities market regulator is a signatory to the International Organization of Securities Commission’s
Multilateral Memorandum of Understanding or party to an MOU with SEBI;
II) whose central bank is a member of the Bank for International Settlements in case if the applicant is a bank; and
III) not mentioned in the public statement of Financial Action Task Force as a country having issues related to combating financing of terrorism or money laundering
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Other Qualification
ApplicantAuthorized to
investby
lawOf country ofIncorporationOf COMPANY
MOAANDAOA
Other documents
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Conditions for Registration as FPIs the applicant must
have sufficient experience, professional competence, good track record, financial soundness and a reputation for fairness and integrity
must meet the criteria specified in the SEBI (Intermediaries) Regulations, 2008
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THANK YOU
MADE BY JAGPEET KAUR