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NISM Certifications · NISM-Series-VI: Depository Operations · Foreign Portfolio Investors (FPI)

A Category II FPI asks the DP how long its FPI registration remains valid. The DP should state that, under the FPI Regulations 2019, the registration is:

FPI registration under the 2019 Regulations is permanent, provided the prescribed fees are paid, unless it is surrendered, suspended or cancelled by SEBI. It does not expire after a fixed number of years, and exchanges have no role in renewing it.

  1. AValid for 3 years and renewable only on SEBI approval
  2. BValid for 5 years with renewal every year on payment of fees
  3. CValid for 1 year and must be renewed by the exchange
  4. DPermanent, subject to payment of the prescribed fees, unless suspended or cancelledCorrect

Explanation

Under the 2019 Regulations, FPI registration is permanent unless surrendered, suspended or cancelled by SEBI, subject to payment of fees at the prescribed intervals. The fixed-term options describe a rule that does not apply.

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