NISM Certifications · NISM-Series-VI: Depository Operations · Foreign Portfolio Investors (FPI)
Under the SEBI FPI Regulations, how are FPIs categorised after the 2019 revision?
After the 2019 revision, FPIs fall into only two categories, Category I and Category II. The earlier Category III was merged into Category II, so a three-category classification is outdated and incorrect.
- ACategory I, Category II and Category III
- BCategory I and Category II onlyCorrect
- CCategory A, Category B and Category C
- DRetail, institutional and sovereign
Explanation
The 2019 regulations merged the earlier three categories into two: Category I (such as government and government-related investors, regulated pension funds and similar entities) and Category II (all other eligible FPIs, such as regulated funds not in Category I and others). The earlier Category III was removed.
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