India continues to be an attractive investment destination for global investors. With the launch of India International Exchange, International investors are exploring greater opportunities. Further, tax benefits and ease of trading in India INX at GIFT IFSC makes India a more accessible destination amongst markets. The Regulations for FPI have considerably eased the entry norms to access the markets at GIFT IFSC.
Foreign Portfolio Investors (FPI)
FPI stands for Foreign Portfolio Investor. In India, the term "Foreign Portfolio Investor" refers to FIIs or their sub-accounts, or qualified foreign investors (QFIs)
Under the SEBI FPI Regulations, 2014, Foreign Institutional Investors (FIIs), Sub Accounts (SA) and Qualified Foreign Investors (QFIs) were merged into a single category, referred to as FPIs.
Based on Risk profile, from Low to High, 3 categories has been formed by SEBI. Category 1 being Low risk and Category 3 for high risk entities
Category I (Low Risk):
This category shall include Government and Government related entities such as Central Banks, Governmental agencies, sovereign wealth funds and international or multilateral organizations or agencies.
Category II (Moderate Risk)
Category III (High Risk)
- Regulated broad-based funds such as mutual funds, investment trusts, insurance/reinsurance companies
- Regulated persons such as banks, asset management companies, investment managers/ advisors, portfolio managers
- Broad-based funds not 'appropriately regulated'* but whose investment manager (including investment advisor or trustee) is appropriately regulated and registered as Category II FPI
- University Funds, Pension Funds and University related Endowments already registered with SEBI
All others FPIs not eligible under Category I and II such as endowments, charitable societies, charitable trusts, foundations, corporate bodies, trusts, individuals and family offices