Tougher entry into India for investors from 25 nations in 'high risk' list

Mauritius is in the list; moreover, no NRI can own more than 25 per cent in an FPI

Participation in Indian markets will get more difficult for foreign institutions based out of Mauritius – India’s second largest source of Foreign Portfolio Investor (FPI) flows. According to sources, the global custodians have recognised 25 countries including Mauritius, Cyprus and United Arab Emirates (UAE) as ‘high-risk jurisdictions’. Going forward, off-shore funds investing through these countries will have to comply with additional Know Your Customer (KYC) norms.

Currently, the KYC requirements of FPIs are based on the category they fall under. Category I and II FPIs, who are considered low-risk investors, need to provide minimum documentation while Category III FPIs who