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E-mail ID will not be published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.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Government must give up majority ownership in loss making PSU banks

    After four years of braving economic slowdown and provisioning for rising non performing assets (NPAs), public sector banks are in urgent of capital.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

BK Chaturvedi

Cooperative federalism and governance

Improving relations between the states and the Centre to improve ...

Kuruvilla Pandikattu SJ

Reason drives religion, science

Both religion and science are driven by reason, claims Rama ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture