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

A foreign fund wants to invest in Indian listed shares under the SEBI (Foreign Portfolio Investors) Regulations, 2019. Through whom must it obtain FPI registration?

A foreign investor obtains FPI registration through a Designated Depository Participant, which processes the application on behalf of SEBI. Stock exchanges, RBI or the Finance Ministry do not issue FPI registration under the 2019 regulations.

  1. ADirectly from the stock exchange where it intends to trade
  2. BA Designated Depository Participant (DDP) acting on behalf of SEBICorrect
  3. CThe Reserve Bank of India's regional office
  4. DThe Ministry of Finance through the Department of Revenue

Explanation

FPI registration is granted by SEBI through Designated Depository Participants, which are approved DPs (typically banks or custodians) who process applications. Exchanges, RBI and the Ministry do not grant FPI registration.

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