FPI eligibility rules limit NRI/OCI/RI ownership and control and require manager registration, with specified exceptions. SEBI clarifies that beneficial ownership under PMLA Rules applies only for KYC and not for FPI eligibility; NRIs/OCIs/RIs may be constituents if a single contribution is below 25% and aggregate contributions are below 50%, and they are not in control of the FPI. Investment managers owned or controlled by NRIs/OCIs/RIs may control FPIs only if the IM is regulated and registers as a non-investing FPI or is incorporated and registered in India. Exceptions include FPIs investing only in mutual funds and offshore funds with a no-objection certificate. A two-year transition and a 90-day cure period are provided.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
FPI eligibility rules limit NRI/OCI/RI ownership and control and require manager registration, with specified exceptions.
SEBI clarifies that beneficial ownership under PMLA Rules applies only for KYC and not for FPI eligibility; NRIs/OCIs/RIs may be constituents if a single contribution is below 25% and aggregate contributions are below 50%, and they are not in control of the FPI. Investment managers owned or controlled by NRIs/OCIs/RIs may control FPIs only if the IM is regulated and registers as a non-investing FPI or is incorporated and registered in India. Exceptions include FPIs investing only in mutual funds and offshore funds with a no-objection certificate. A two-year transition and a 90-day cure period are provided.
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