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

An FPI registered in Category I wants to understand how its category differs from Category II. Which of the following entities would fall under Category I under the FPI Regulations, 2019?

Sovereign wealth funds and central banks of foreign countries fall under Category I FPIs, as they are government and government-related investors. Individuals, family offices and certain other funds are placed in Category II under the FPI Regulations, 2019.

  1. AA broad-based fund that is not appropriately regulated in its home country
  2. BA sovereign wealth fund or a central bank of a foreign countryCorrect
  3. CAn individual non-resident investor
  4. DA family office

Explanation

Category I includes government and government-related investors such as central banks, sovereign wealth funds and multilateral agencies. Individuals, family offices and funds that are not appropriately regulated or are not broad-based fall in Category II.

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