Regulated entities like banks, AMCs can now invest as Category II FPIs

This will give a lot of flexibility to them to invest, based on different client strategies

Regulated entities such as banks, asset management companies, and portfolio managers have been given the nod to undertake investments on behalf of their clients as Category-II foreign portfolio investors (FPIs). 

This is in addition to undertaking proprietary investment by taking separate registrations as category-I FPIs.

Until now, private banks had to pool money from different clients and set up a fund to invest money after separately registering as an FPI. With change in the Securities and Exchange Board of India’s (Sebi’s) operating guidelines, every client need not take a separate registration. The entities — be it private banks, asset or portfolio managers