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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 through the FPI route. Which entity grants the FPI registration under the SEBI (Foreign Portfolio Investors) Regulations, 2019?

FPI registration is granted by a Designated Depository Participant acting on behalf of SEBI under the FPI Regulations, 2019. The applicant applies through the DDP, which processes it, rather than the RBI, exchanges or the tax authorities.

  1. AReserve Bank of India directly
  2. BDesignated Depository Participant (DDP) on behalf of SEBICorrect
  3. CThe stock exchange where shares are to be traded
  4. DMinistry of Finance through the Income Tax Department

Explanation

Under the 2019 FPI Regulations, applications for registration are made through a Designated Depository Participant, which grants registration on behalf of SEBI. The RBI, stock exchanges and the tax department do not grant FPI registration.

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