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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 whom must its application for FPI registration be made under the SEBI FPI Regulations?

The FPI applicant must apply through a Designated Depository Participant (DDP), which is authorised by SEBI to grant registration. Stock exchanges, RBI offices and registrars do not process FPI registration applications, so they are not the correct channel.

  1. AThrough a Designated Depository Participant (DDP)Correct
  2. BDirectly through the stock exchange where it intends to trade
  3. CThrough the Reserve Bank of India's regional office
  4. DThrough the 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 is authorised by SEBI to grant FPI registration on its behalf. Exchanges, the RBI office and RTAs have no role in granting registration.

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