India inflows may get boost with category-I FPI status for Cyprus funds

Cyprus is the third non-FATF country to be given status in a move that could prompt more and possibly larger funds from Europea to route their investments through the island nation

The Indian government has classified foreign portfolio investors (FPIs) from Cyprus as eligible for taking up Category-I licence — a move that could boost investment from the region into India.

Cyprus is the third non-FATF country, after Mauritius and UAE, to be given the exemption --- a move that could prompt more and/or larger funds from the European Union to route their investments through the island nation. Cyprus is a part of EU, which is a political and economic union comprising 27 member states.

Being part of Category-I implies lower compliance burden, simplified know-your-customer norms and documentation requirements, and fewer