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

A foreign entity wants to invest in Indian listed shares as a Foreign Portfolio Investor. Through which intermediary must it obtain its FPI registration under the SEBI (Foreign Portfolio Investors) Regulations, 2019?

The foreign entity must apply through a Designated Depository Participant (DDP). The DDP, approved by SEBI, grants FPI registration on SEBI's behalf under the FPI Regulations, 2019. Clearing corporations, RBI offices and issuers do not perform this registration role.

  1. AA Designated Depository Participant (DDP)Correct
  2. BA stock exchange clearing corporation
  3. CThe Reserve Bank of India regional office
  4. DThe company whose shares it wishes to buy

Explanation

Under the FPI Regulations, 2019, registration is granted by SEBI through Designated Depository Participants, who are DPs approved by SEBI for this purpose. Clearing corporations, the RBI regional office and issuer companies do not process FPI registration.

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