Foreign Portfolio Investor (FPI) means a person who satisfies the eligibility criteria prescribed under SEBI (Foreign Portfolio Investors) Regulations, 2019 which shall be deemed to be an intermediary in terms of the provisions of the SEBI Act, 1992.
Categories of FPI
Category I FPIs include:
- Government and Government related investors such as central banks, sovereign wealth funds, international or multilateral organizations or agencies including entities controlled or at least 75% directly or indirectly owned by such Government and Government related investor(s);
- Pension funds and university funds;
- Appropriately regulated entities such as insurance or reinsurance entities, banks, asset management companies, investment managers, investment advisors, portfolio managers, broker dealers and swap dealers;
- Entities from the Financial Action Task Force member countries, or from any country specified by the Central Government by an order or by way of an agreement or treaty with other sovereign Governments, which are–
- appropriately regulated funds;
- unregulated funds whose investment manager is appropriately regulated and registered as a Category I foreign portfolio investor. However the investment manager undertakes the responsibility of all the acts of commission or omission of such unregulated fund;
- university related endowments of such universities that have been in existence for more than five years;
- An entity (A) whose investment manager is from the Financial Action Task Force member country and such an investment manager is registered as a Category I foreign portfolio investor; or (B) which is at least 75% owned, directly or indirectly by another entity, eligible under sub-clause (ii), (iii) and (iv) of clause (a) of this regulation and such an eligible entity is from a Financial Action Task Force member country. However such an investment manager or eligible entity undertakes the responsibility of all the acts of commission or omission of the applicants seeking registration under this sub-clause.
Category II FPIs include all the investors not eligible under Category I foreign portfolio investors such as –
- appropriately regulated funds not eligible as Category-I foreign portfolio investor;
- endowments and foundations;
- charitable organisations;
- corporate bodies;
- family offices;
- individuals;
- appropriately regulated entities investing on behalf of their client, as per conditions specified by the Board from time to time;
- Unregulated funds in the form of limited partnership and trusts.
Explanation: An applicant incorporated or established in an International Financial Services Centre shall be deemed to be appropriately regulated.