With continuing interest in the Indian equities and bonds, foreign portfolio investors (FPIs) have increased in last financial year, as per the Securities and Exchange Board of India’s (Sebi) data. In the last financial year (FY18), more than 1,300 fresh foreign portfolio investors (FPIs) were registered with Sebi.
As per regulator's Data, the number of FPIs with the markets regulator climbed to 9,136 at the end of March this year from 7,807 a year ago, resulting in an addition of 1,329. Moreover, the end of the earlier FII (foreign institutional investors) and sub-accounts regime, which ended in September 2016, necessitated all such entries to register as FPI.
In a big revamp, in 2014, Sebi has released norms that clubbed different categories of foreign investors into a new class called FPIs. They have been divided into three categories as per their risk profile and KYC (know your customer) requirements while other registration procedures have been made simpler. They are granted permanent registration as against the earlier practice of approval granted for one or five years to overseas entities seeking to invest in the Indian markets. The registration remains permanent unless suspended or cancelled by Sebi or surrendered by an FPI.