REVIEW OF SEBI (FOREIGN PORTFOLIO INVESTORS) REGULATIONS

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.