NISM Certifications · NISM-Series-VI: Depository Operations · Foreign Portfolio Investors (FPI)
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 fund would fall?
Such an FPI falls under Category I. This category covers government and government-related foreign investors, including central banks, sovereign wealth funds and certain pension funds, which are treated as lowest risk. Category II is for regulated funds and other entities.
- ACategory ICorrect
- BCategory II
- CCategory III
- DCategory IV
Explanation
Category I includes government and government-related investors such as central banks, sovereign wealth funds, and pension funds meeting criteria. Category II covers entities like appropriately regulated funds and broad-based funds, so it is not the right category here.
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