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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 through the portfolio investment route. Which entity must it first obtain registration through, under the SEBI (Foreign Portfolio Investors) Regulations, 2019?

A foreign fund must obtain FPI registration through a Designated Depository Participant, which grants it on behalf of SEBI under the FPI Regulations, 2019. The RBI, stock exchanges and registrars do not register FPIs.

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

Explanation

Under the FPI Regulations, 2019, an applicant seeks registration as an FPI through a Designated Depository Participant, which grants registration on behalf of SEBI. The RBI, exchanges and RTAs do not grant FPI registration.

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