Foreign Portfolio Investors (FPI) Advisory
Invest into Indian capital markets
International investors can trade in Indian capital markets using the Foreign Portfolio Investor (FPI) route. According to FEMA, any investment by Person Resident Outside India (PROI) into listed Indian company up to 10% of its paid-up capital is regarded as portfolio investment.
Investors looking to diversify their portfolio can invest into Indian capital markets as FPIs.
Various investment opportunities are available ranging from equity instruments to derivative instruments including debt instruments.
FPIs are divided into two categories:
Category – I FPI includes :
Government and Government related investors;
Pension funds and university funds;
Appropriately regulated entities such as asset management companies, banks, investment managers, investment advisors, portfolio managers;
Eligible entities from the Financial Action Task Force (FATF) member countries;
Category II FPI includes all investors not eligible under Category I such as:
appropriately regulated funds not eligible as Category-I foreign portfolio investor;
endowments and foundations;
charitable organizations;
corporate bodies;
family offices;
Individuals;
Unregulated funds in the form of limited partnership and trusts
PnP Consulting’s in-depth knowledge of regulatory and tax framework can enable it to act “Tax Consultant” to FPI. PnP can offer one-stop solution providing entire spectrum of services ranging which includes:
Advising on the investment structure of FPI for investment into India, including the assistance for tax and regulatory planning.
Aiding in the registration of FPI with Designated Depository Participant (DDP), including opening of bank account in line with the investment structure.
Advising on the eligibility of different instruments that FPI’s can invest into.
Assisting in obtaining PAN (Tax Identification Number in India)
Liaising with DDPs to ensure tax filing and other regulatory filings to RBI.