Effective 7 April 2020, SEBI has amended their FPI Regulations, 2019 to provide that FPI applicants from a non-FATF member country may also qualify for a Category I registration provided such country is specified by the Indian Central Government for this purpose or the Indian Central Government enters into an agreement or treaty with such country.
The Indian Ministry of Finance issued an order on 13 April 2020 stating that Mauritius is now an eligible country for the purpose of registering for a Category I FPI license.
With this order from the Central Government of India, Mauritius based funds will now be able to register for a Category I FPI License and therefore benefit from the numerous advantages available to Category I FPIs, including:
- Exemption from indirect share transfer provisions;
- Higher derivative position limits;
- Ability to issue and subscribe to Offshore Derivative Instruments (ODIs - such as Participatory Notes or Total Return Swaps) backed by underlying Indian securities; and
- Lower KYC documentation
The contents of this article are intended for informational purposes only. The article should not be relied on as legal or other professional advice. Neither Vistra Group Holding S.A. nor any of its group companies, subsidiaries or affiliates accept responsibility for any loss occasioned by actions taken or refrained from as a result of reading or otherwise consuming this article. For details, read our Legal and Regulatory notice at: http://www.vistra.com/notices . Copyright © 2024 by Vistra Group Holdings SA. All Rights Reserved.
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