Capital markets regulator Securities and Exchange Board of India (SEBI) has tweaked the guidelines for registration of foreign portfolio investors (FPIs) pertaining to non-resident Indians, overseas citizens of India and the resident Indians as participant of such foreign investors.
Under the new rule, FPIs applying for registration need to ensure that the contribution of a single NRI or overseas citizen of India (OCI) or resident Indian in its corpus is below 25 per cent, according to a notification. Further, at an aggregate level, the applicant FPI needs to ensure that their contribution in its corpus is below 50 per cent.
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The new rule requires that NRIs, overseas citizens of India and resident Indians should not be in control of the applicant FPI. “The contribution of resident Indian individuals shall be made through the Liberalised Remittance Scheme notified by the Reserve Bank of India (RBI) and shall be in global funds whose Indian exposure is less than 50 per cent,” said SEBI. To give this effect, SEBI has amended FPI rules that became effective from June 25.
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Published: 27 Jun 2024, 05:45 PM IST
