Key aspects of revised regulations include:
- To simplify the registration process and to bring about ease in compliance requirements for FPIs, the broad based eligibility criteria for institutional foreign investors has been done away with.
- On reviewing the risk profiling of the FPIs, it is decided that the FPIs may be re-categorized into two categories, instead of the present requirement of three categories.
- Registration for multiple investment manager (MIM) structures has been simplified.
- Considering that the central banks are relatively long term, low risk investors directly/ indirectly managed by the Government, the central banks that are not the members of BIS (Bank for International Settlement) shall also be eligible for FPI registration.
- The entities established in the international financial services center (IFSC) be deemed to have met the jurisdiction criteria for FPIs.
- FPIs shall be permitted for off-market transfer of securities which are unlisted, suspended or illiquid, to a domestic or foreign investor.
- Offshore funds floated by Indian Mutual Funds shall now be permitted to invest in India after obtaining registration as FPI.
- The requirements for issuance and subscription of Offshore Derivative Instruments (ODIs) have been rationalized.
