Skip to content

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

A Mauritius-based fund wants to invest in Indian listed shares as a Foreign Portfolio Investor. Through which entity does it obtain its FPI registration in India?

A foreign fund obtains FPI registration through a Designated Depository Participant (DDP) authorised by SEBI. The DDP processes the application and grants registration on SEBI's behalf. Exchanges, RTAs and the RBI regional office do not perform this registration function.

  1. AA Designated Depository Participant (DDP) authorised by SEBICorrect
  2. BThe Reserve Bank of India regional office directly
  3. CThe stock exchange where it first intends to trade
  4. DThe Registrar and Transfer Agent of the target company

Explanation

Under the SEBI FPI Regulations, an applicant applies for registration through a Designated Depository Participant, which grants registration on behalf of SEBI. The RBI, exchanges and RTAs do not grant FPI registration.

Did you get it right without looking?

One question tells you little. A timed set on Foreign Portfolio Investors (FPI) shows your real accuracy, how long you take and where you lose marks.

Practise Foreign Portfolio Investors (FPI)Free diagnostic mock

More Foreign Portfolio Investors (FPI) questions