NISM Certifications · NISM-Series-VI: Depository Operations · Foreign Portfolio Investors (FPI)
For an FPI that needs to sell its holdings, which entity acts as the one that settles the FPI's trades and holds its securities and funds on its behalf in the Indian market?
A SEBI-registered custodian performs this role. FPIs must appoint one to hold securities, settle trades, manage funds and handle reporting, whereas registrars, exchange listing departments and protection funds have different functions unrelated to settling the FPI's trades.
- AA SEBI-registered custodianCorrect
- BThe issuer company's registrar
- CThe stock exchange's listing department
- DThe depository's investor protection fund
Explanation
FPIs must appoint a SEBI-registered custodian of securities, which handles trade settlement, safekeeping and reporting. Registrars deal with issuer records, and the listing department and investor protection fund do not settle an FPI's trades.
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
- A DP is opening a demat account for a newly registered FPI. Which statement about the account and its operation is correct?
- An FPI client asks a DP whether it can hold its Indian securities in physical certificate form after registration. What is the correct posit…
- An FPI client with a demat account wants to know how corporate benefits such as bonus shares on its holdings are credited. Which is correct?
- A foreign entity wants to invest in Indian listed shares through the FPI route. Which entity grants the FPI registration under the SEBI (For…
- An FPI client with a demat account at a DP wants to hold Indian equity shares. Within the FPI investment framework, which holding limit appl…
- 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…