Section 4 in Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019
4. Eligibility criteria of foreign portfolio investor.
- A designated depository participant shall consider an application for grant of certificate of registration as a foreign portfolio investor if the applicant satisfies the following conditions namely: -(a)the applicant is not a resident Indian;(b)the applicant is not a non-resident Indian or an overseas citizen of India;(c)non-resident Indians or overseas citizens of India or resident Indian individuals can be constituents of the applicant provided they meet conditions specified by the Board from time to time;(d)the applicant is a resident of the country whose securities market regulator is a signatory to the International Organization of Securities Commission's Multilateral Memorandum of Understanding (Appendix A Signatories) or a signatory to the bilateral Memorandum of Understanding with the Board:Provided that an applicant being Government or Government related investor shall be considered as eligible for registration, if such applicant is a resident in the country as may be approved by the Government of India;(e)the applicant being a bank is a resident of a country whose central bank is a member of Bank for International Settlements:Provided that a central bank applicant need not be a member of Bank for International Settlements;(f)the applicant or its underlying investors contributing twenty-five per cent or more in the corpus of the applicant or identified on the basis of control, shall not be the person(s) mentioned in the Sanctions List notified from time to time by the United Nations Security Council and is not a resident in the country identified in the public statement of Financial Action Task Force as -(i)a jurisdiction having a strategic Anti-Money Laundering or Combating the Financing of Terrorism deficiencies to which counter measures apply; or(ii)a jurisdiction that has not made sufficient progress in addressing the deficiencies or has not committed to an action plan developed with the Financial Action Task Force to address the deficiencies;(g)the applicant is a fit and proper person based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008;(h)any other criteria specified by the Board from time to time:Provided that clause (a), (d) and (e) shall not apply to an applicant incorporated or established in an International Financial Services Centre.
