NISM Certifications · NISM-Series-VI: Depository Operations · Foreign Portfolio Investors (FPI)
A Category II FPI wants to trade in India. Which of the following instruments may an FPI generally invest in, as per the FPI Regulations?
FPIs may invest in securities such as listed equity shares, government securities and corporate bonds, subject to prescribed limits and conditions. They are not restricted to unlisted shares, commodity futures or physical gold under the FPI Regulations.
- AOnly unlisted private company shares
- BOnly commodity futures
- CSecurities such as listed equity shares, government securities and corporate bonds, within prescribed limitsCorrect
- DOnly physical gold held with the custodian
Explanation
FPIs may invest in listed or to-be-listed equity, government securities, corporate debt and other permitted securities, subject to investment limits and conditions. Other options list instruments that are not the general FPI investment universe.
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