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

A DP receives a request from an FPI client for a demat account. Which feature distinguishes the FPI's demat account opening from that of a resident individual?

An FPI's demat account is opened in the FPI's own name through its custodian, with its SEBI registration details supplied along with the KYC documents. FPIs are allowed demat accounts, and no separate account per security is required.

  1. AFPIs cannot open demat accounts at all
  2. BFPIs open the account with the custodian-DP and the PAN of the FPI is not required
  3. CThe account is opened in the FPI's name through its custodian, and the FPI registration number is part of the documentsCorrect
  4. DFPIs must open a separate account for each security held

Explanation

An FPI demat account is opened in the FPI's own name through its custodian DP, and the SEBI registration details are furnished along with KYC documents. FPIs can certainly hold demat accounts, and a separate account for every security is never required.

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