Securities Law

1,473

How Foreign Portfolio Investor (FPI) can register In India

Posted on by Fastlegal Team

A Foreign Portfolio Investor (FPI) can Setup Proprietary trading firm India. The Foreign Portfolio Investors in India are divided in India in Three Categories :

Categories for Foreign Portfolio Investors (FPI) : –

Category I foreign portfolio investor” which shall include Government and Government related investors such as central banks, Governmental agencies, sovereign wealth funds and international or multilateral organizations or agencies.
Category II :  In this category FPI like  appropriately regulated Mutual Funds, Investment trusts, insurance/reinsurance companies,  banks, asset management companies, investment managers/ advisors, portfolio manager,  university funds and pension funds etc.
Appropriately regulated ” if it is regulated or supervised by the securities market regulator or the banking regulator of the concerned foreign jurisdiction, in the same capacity in which it proposes to make investments in India.
Category III :  foreign portfolio investor” which shall include all others not eligible under Category I and II foreign portfolio investors such as endowments, charitable societies, charitable trusts, foundations, corporate bodies, trusts, individuals and family offices.
Every Foreign Portfolio Investor is required to obtain Registration for FPI with Designated Depository Participant (DDP) on Behaf of SEBI.

Procedure to get registration :

1. Appoint a legal representative: 

Appoint a legal representative in India to fill out the forms required by the regulatory authorities. The role of legal representative can be played by any financial institution authorized by the Reserve Bank of India.

Choose at DDP to get registered as FPI. The following is the link of List of DDPs:

http://www.sebi.gov.in/cms/sebi_data/attachdocs/1401427321828.pdf

2. Appoint a Tax adviser: 

A tax advisor will help you comply with all Tax obligations that will arise from your activities in India.

 3. Appoint a Domestic Custodian

Appoint a domestic custodian and before making any investments in India, enter into an agreement with the domestic custodian providing for custodial services in respect of securities.

Domestic Custodian means any entity registered with SEBI to carry on the activity of providing custodial services in respect of securities.

4. Appoint a designated Bank

Once you are granted registration as an FPI, you will need to appoint a Designated Bank.  The Designated Bank will open and maintain a foreign currency account and/or a Non Resident Special Rupee Account for you.

Designated Bank means any bank in India which has been authorized by the Reserve Bank of India to act as a banker to FPIs.

5. Appoint a trading member: 

A Trading member will execute trades for the FPI. An FPI can have multiple TM’s

6. Appoint a clearing member: 

Clearing member does the confirmation of trades. Clearing through single clearing member. CM–CP Agreement executed with the CM to get CP Code. CP code facility (can use existing CP code) or signing of agreement.

7. Appointment of a Compliance Officer

Every FPI is required to appoint a compliance officer who shall be responsible for monitoring the compliance of the Act, rules and regulations, notifications, guidelines, instructions etc. issued by the Board or the Central Government.

 

Fastlegal Provides Advisory Support and help you in getting the FPI Registration in India, Please email us your requirements at “mail@fastlegal.in” or Place your request below:

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