NISM Certifications · NISM-Series-VI: Depository Operations · Foreign Portfolio Investors (FPI)
An FPI is registered with SEBI and wants to start trading in Indian equities. Before it can buy shares, which of the following must it have in place?
The FPI needs a custodian arrangement, a PAN and a demat account with a depository participant. Indian securities held by FPIs are maintained in dematerialised form via a domestic custodian, so a foreign bank or broker account alone is insufficient.
- AA custodian account and a demat account with a DP, along with a PANCorrect
- BOnly a bank account in its home country
- CA trading account with a foreign broker and no Indian demat account
- DA physical share certificate account with the issuer
Explanation
FPIs must appoint a domestic custodian, obtain a PAN and hold securities in dematerialised form through a demat account with a depository participant. A foreign bank account alone cannot hold Indian securities, and physical holding is not the route.
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.
More Foreign Portfolio Investors (FPI) questions
- Mr. Rao, a DP official, is asked by an FPI client whether it may buy shares of an Indian company in the primary market and the secondary mar…
- A Category II FPI wants to trade in India. Which of the following instruments may an FPI generally invest in, as per the FPI Regulations?
- Under the SEBI FPI Regulations, how are FPIs categorised after the 2019 revision?
- An FPI registered as a Category I investor wishes to understand the classification. Which of the following would typically fall within Categ…
- An FPI wants to transfer its securities held at a DP to a different FPI demat account of the same entity as part of a restructuring. Which i…
- An FPI holds equity shares in demat form through its custodian-linked DP. It wishes to hold the same shares in a second demat account with a…