Over 1,200 fresh foreign portfolio investors (FPIs) were registered with markets regulator Securities and Exchange Board of India (SEBI) during April-January period of fiscal year 2017-18, driven by their continued interest in Indian equity, bonds and real estate. According to the SEBI data, the number of FPIs with the markets regulator climbed to 9,083 at the end of January 2018 from 7,807 at March 2017, resulting in an addition of 1,276. This comes on top of about 3,500 new FPIs registering with SEBI in the previous fiscal.
The SEBI’s board in December had decided to relax entry norms for FPIs willing to invest in the Indian markets as part of its effort to easing direct registration for such investors and avoid participatory notes (P-notes) route. Also, it had decided to ease some rules, including expanding the eligible jurisdictions for registration by including countries with diplomatic tie-ups with India.
Besides, the markets regulator had approved a proposal to rationalise 'fit and proper' criteria for FPIs as well as simplify broad-based requirements for such investors. In a major revamp, SEBI in 2014 had released norms that had clubbed different categories of foreign investors into a new class called FPIs. Under the regime, FPIs have been divided into three categories as per their risk profile and the KYC (know your client) requirements, while other registration procedures have been made simpler for them.