NISM Certifications · NISM-Series-VI: Depository Operations · Foreign Portfolio Investors (FPI)
An FPI registered as a Category I investor wishes to understand the classification. Which of the following would typically fall within Category I under the FPI Regulations, 2019?
A government-related investor such as a central bank typically falls under Category I. This category covers sovereign and government-linked entities like central banks, sovereign wealth funds and multilateral agencies, whereas individuals and family offices are placed in Category II.
- AA government-related investor such as a central bankCorrect
- BAn unregulated individual investor
- CA family office
- DA hedge fund that is not broad-based
Explanation
Category I includes government and government-related investors such as central banks, sovereign wealth funds and multilateral agencies. Individuals, family offices and other entities not meeting regulation or broad-based criteria fall under Category II or are otherwise treated differently. Hence only the government-related investor fits Category I.
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
- Under the FPI framework, an FPI's aggregate holding limit in a single Indian company is monitored by depositories. Which statement correctly…
- Under the SEBI FPI Regulations, 2019, which of the following is the category into which an FPI that is a sovereign wealth fund or a pension …
- An FPI registered in Category I wants to understand how its category differs from Category II. Which of the following entities would fall un…
- Under the FPI framework, a single FPI (together with its investor group) holds 10.5% of the paid-up equity capital of an Indian listed compa…
- 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?