Sebi eases norms for registration of FPIs, junks 'broad-basing' criteria

The erstwhile three categories of FPIs have been merged into two

The Securities and Exchange Board of India (Sebi) on Wednesday issued a notification for easing the process for on-boarding overseas investors. The notification states that foreign portfolio investors (FPIs) are no longer required to meet the ‘broad-basing’ criteria, under which at least 20 investors were required to establish a fund.

However, in order to ensure the money coming in is clean, the FPI or underlying investors — contributing a minimum of 25 per cent or identified on the basis of control — should not be part of the Sanctions List notified by the UN Security Council, and also should reside in