Section 5 in Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019
5. Categories of foreign portfolio investor.
- An applicant seeking registration as a foreign portfolio investor may apply in one of the categories mentioned hereunder or any other category as may be specified by the Board from time to time -(a)"Category I foreign portfolio investor" which shall include -(i)Government and Government related investors such as central banks, sovereign wealth funds, international or multilateral organizations or agencies including entities controlled or at least 75% directly or indirectly owned by such Government and Government related investor(s);(ii)Pension funds and university funds;(iii)Appropriately regulated entities such as insurance or reinsurance entities, banks, asset management companies, investment managers, investment advisors, portfolio managers, broker dealers and swap dealers;(iv)Entities from the Financial Action Task Force member countries which are -I. appropriately regulated funds;II. unregulated funds whose investment manager is appropriately regulated and registered as a Category I foreign portfolio investor:Provided that the investment manager undertakes the responsibility of all the acts of commission or omission of such unregulated fund;III. university related endowments of such universities that have been in existence for more than five years;(v)An entity (A) whose investment manager is from the Financial Action Task Force member country and such an investment manager is registered as a Category I foreign portfolio investor; or (B) which is at least seventy-five per cent owned, directly or indirectly by another entity, eligible under sub-clause (ii), (iii) and (iv) of clause (a) of this regulation and such an eligible entity is from a Financial Action Task Force member country:Provided that such an investment manager or eligible entity undertakes the responsibility of all the acts of commission or omission of the applicants seeking registration under this sub-clause.(b)"Category II foreign portfolio investor" shall include all the investors not eligible under Category I foreign portfolio investors such as -(i)appropriately regulated funds not eligible as Category-I foreign portfolio investor;(ii)endowments and foundations;(iii)charitable organisations;(iv)corporate bodies;(v)family offices;(vi)Individuals;(vii)appropriately regulated entities investing on behalf of their client, as per conditions specified by the Board from time to time;(viii)Unregulated funds in the form of limited partnership and trusts;Explanation. - An applicant incorporated or established in an International Financial Services Centre shall be deemed to be appropriately regulated.
