Foreign Portfolio Investors

Foreign Portfolio Investors (FPI DESK)

Foreign Portfolio investor refers to Foreign Institutional investors (FIIs) or their sub-accounts or qualified foreign investors (QFIs) who are permitted to hold upto 10% stake in a company. FPI align to nomenclature of categorizing investments of foreign investors in line with international practice. FPI's generally participated through the stock markets and gets in and out of a particular stock at much faster frequencies.

We regularly hold conferences, plant visits, road shows and schedule corporate meeting for the benefit of our clients. Timely interpretation & impact of economic data is used beneficially by our clients. In the derivatives segment we were amongst the first to trade derivatives contracts in India on launch and are rated amongst the top by our clients. Establishing our leadership in the institutional space, we provide our clients access to advanced & efficient technology for trade execution - DMA, FIX, Co-Location facility, & customised Algos etc.

Our clients benefit from our local expertise, international perspective, and scale, while institutional investors can access our team of highly regarded equity & derivatives research analysts and top class execution capabilities. Our research team provides in-depth analysis and ongoing research coverage of over 160 companies in 14 sectors.

Resources

June 2019 Issue Image

June 2019 Issue

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Instruments available for Investment

Asset Class Description
Equity
  • Shares, Debentures and Warrants, listed or to be listed (both Primary / Secondary)
  • Derivates traded on a recognized Stock Exchange
  • Units of domestic Mutual Fund Schemes, whether listed or not
  • Indian depository Receipts (IDRs)
  • Other instruments as permitted from time to time
Derivatives
  • Equity
  • Interest Rate
  • Currency
Debt
  • Dated Government Securities
  • Commercial Papers issued by an Indian Company
  • Rupee denominated Credit Enhanced Bonds
  • Security Receipts issued by Asset Reconstruction Companies
  • Perpetual Debt instruments and debt capital instruments, as specified by RBI from time to time
  • Non Convertible Debentures / Bonds issued by an Indian Company in the Infrastrucure sector
  • Non Convertible Debentures / Bonds issued by NBFCs categorized as 'Infrastructure Finance Company' by RBI
  • Rupee denominated bonds or units issued by Infrastructure Debt Funds
  • Such other instruments specified by SEBI from time to time

Operational Flow Chart

Foreign Investors Flowchart

FAQ’s

Q) Who is a Foreign Portfolio Investor (FPI)?

FPI is a resident in a country other than India, whose securities market regulator is a signatory to IOSCO’s MMOU (Appendix A Signatories) or a signatory to a bilateral MOU with SEBI. In case of a Bank, it should be resident of a country whose central bank is a member of the Bank for International Settlements (BIS). The person should not be resident in a country listed in the public statements issued by FATF (high risk and non-compliant countries) from time to time on
- Jurisdictions having a strategic Anti-Money Laundering/ Combating the Financing of Terrorism (AML/CFT) deficiencies to which counter measures apply or
- Jurisdictions that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies.

Q) Which are the eligible foreign investor categories who can register as FPIs?

The following categories of investors are eligible to register as FPIs:

Category I

  1. Government and Government related investors such as Central Banks, Governmental agencies, sovereign wealth funds, international/ multilateral organisations/ agencies.

  2. Pension funds and university funds.

  3. Regulated entities including insurance or re-insurance entities, banks, asset management companies, investment managers, investment advisors, portfolio managers, broker dealers and swap dealers.

  4. The following entities set up in Financial Action Task Force (FATF) member countries:

    1. Regulated funds

    2. Unregulated funds whose investment manager is regulated and registered as a Category I FPI

    3. Endowments of a university which has been in existence for more than 5 years

  1. Any entity:

    1. Whose investment manager is from a FATF member country and such investment manager is registered in India as a Category I FPI;
      Or

    2. Which is at least 75 percent owned directly or indirectly by an entity referred in (a) to (c) above provided the entity which owns at least 75 percent ownership in the FPI is from a FATF member country

Category II

It shall include all the investors not eligible under Category I foreign portfolio investors such as–

  1. Appropriately regulated funds not eligible as Category-I foreign portfolio investor;

  2. Endowments and foundations;

  3. Charitable organisations;

  4. Corporate bodies;

  5. Family offices;

  6. Individuals;

  7. Appropriately regulated entities investing on behalf of their client, as per conditions specified by the Board from time to time;

  8. Unregulated funds in the form of limited partnerships and trusts;

  9. Others