SEBI Revamps FPI Registration Rules for NRIs and OCIs

The Securities and Exchange Board of India (SEBI) has updated the guidelines for registering Foreign Portfolio Investors (FPIs), impacting non-resident Indians (NRIs), overseas citizens of India (OCIs), and resident Indians. Key changes include limiting the contribution from a single NRI or OCI to below 25% and from all sources to below 50%.

The Securities and Exchange Board of India (SEBI) has introduced significant updates to guidelines for Foreign Portfolio Investors (FPIs), particularly affecting non-resident Indians (NRIs), overseas citizens of India (OCIs), and resident Indians.

Under the revised guidelines, SEBI mandates that the contribution from a single NRI or an OCI to the FPI's corpus should remain under 25%, as per the new notification. Aggregated contributions must not exceed 50% of the corpus.

Importantly, the new rule stipulates that NRIs, OCIs, and resident Indians should not exert control over the applicant FPI. Contributions must be channeled through the Liberalised Remittance Scheme by the Reserve Bank of India and should be directed to global funds with Indian exposure of less than 50%. These changes took effect from June 25 following amendments to the FPI rules.

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