As per the capital markets regulator, Securities and Exchange Board of India’s (Sebi’s) latest data of foreign portfolio investors (FPIs), more than 1,300 new FPIs have registered with capital markets regulator in April-August period of 2016-17. This shows a sign of their willingness to be part of India's growth story.
As per the data, the number of FPIs with Sebi approval increased to 5,626 at the end of August from 4,311 in March-end, reflecting an addition of 1,315 such investors. They had pumped in over Rs 36,000 crore in the capital markets (debt and equity) in April-August period. In a big revamp, Sebi had in 2014 released norms that clubbed different categories of foreign investors into a new class called FPIs. Sebi had also decided to offer direct entry to well-regulated foreign investors for investing in corporate bonds. During the last fiscal, a total of 2,900 FPIs had received approval from Sebi.
Based on risk profile and KYC (know your customer) requirements, FPIs have been divided into three categories, while other registration procedures have been made simpler for them. They are granted permanent registration as against the earlier practice of approval granted for one year or five years to overseas entities seeking to invest in Indian markets. The registration remains permanent unless suspended or cancelled by the board or surrendered by FPI.
