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

An FPI's registration under the FPI Regulations, 2019 is granted with a particular validity feature. Which statement is correct?

FPI registration under the 2019 Regulations is permanent unless suspended, cancelled or surrendered. The registration is kept in force by paying a fee every block of five years. It is not a fixed one-, three- or five-year registration needing fresh application.

  1. ARegistration is valid for one year and must be renewed annually
  2. BRegistration is valid for five years and requires a fee for renewal
  3. CRegistration is valid for three years only
  4. DRegistration is permanent, subject to payment of fees every block of five yearsCorrect

Explanation

Under the 2019 Regulations, FPI registration is permanent, unless suspended or cancelled by SEBI or surrendered by the FPI. A fee is payable every block of five years to keep it effective. If the fee is not paid, registration may cease, so it is not a term-limited registration needing fresh application.

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