NRIs owned offshore cos can act as investment manager for FPIs

Tags: News
Offshore companies owned by NRIs or persons of Indian origin can act as investment manager for newly created class of overseas investors, FPIs, provided they are well regulated in their jurisdiction, Sebi has said.

As per Sebi, non-resident Indian (NRI) or person of Indian origin (PIO) is not eligible to make investments as an foreign portfolio investor (FPI).

Accordingly, a company which is majority owned by one or more NRI/PIOs would not be allowed to make investments as an FPI.

"However, if such company is appropriately regulated it may be given registration as Category II FPI for the purpose of acting as investment manager for other FPIs," as per information available with the Securities and Exchange Board of India (Sebi).

FPIs encompasses all foreign institutional investors (FIIs), their sub-accounts and qualified foreign investors (QFI) under a new regime which has been effective from June 1.

The new regime divides FPIs into three categories as per their risk profile and the KYC (know your client) requirements.

Category—I FPIs (lowest risk category) would include foreign governments and government-related foreign investors.

Category—II FPIs include appropriately regulated entities, broad-based funds whose investment manager is appropriately regulated, university funds, university-related endowments and pension funds.

Category—III FPIs would include all others not eligible under the first two categories.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The US can no longer take India for granted, as Kerry’s visit shows

    Despite the feel good factor in Indo-US ties, not the least surprising given BJP’s long term support for free market and laissez-faire economy, the

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Why cleanliness is a vital human right

I have spent the past few months in India witnessing ...

Parvez Imam

Tourism agenda with a colonial undertone

Tourism is supposed to bring in foreign exchange and provide ...

Dharmendra Khandal

Let the tiger breathe in its natural home

The world has been observing July 29 as International Tiger ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture