FPI

The Securities and Exchange Board of India (SEBI) announced the introduction of the Foreign Portfolio Investor(FPI) Regulations on 7th January 2014 and made it effective from June 01, 2014. This path breaking Regulation marks a significant positive change. Non- broad based Funds can now access Indian Capital Markets. In the era before the change, it was primarily the Sovereign Funds and Broad based Foreign Investors that were permitted. The introduction also signifies a marked reduction in complexities while entering the Capital Market, that was existing since early 1990s, for Category I and II. India with this change, adopted the Risk based Categorization of Investors. SEBI pro-actively framed FAQs on the FPI and the KYC norms, thus enabling a better understanding of the above. Some of the key features of the above are: - Faster access to Indian Capital Markets - Designated Depository Participants (DDP) empowered by SEBI to Register Investors - Investment limits enhanced for Specific Investor categories - Sovereign Funds and Broad Based Investors have simpler Documentation process - Harmonization of Investor Categories (FII, Sub-accounts, QFIs) are categorized as FPI. - Investors now have access to invest in Financial Instruments, hitherto available to FII investors only
PIVOT’S footprints since July 2014:

PIVOT’S footprints since July 2014:

Foreign Portfolio Investor (FPI) Regulations effective from June 01, 2014. India with this change, adopts Risk based Categorization of Investors. SEBI pro-actively framed FAQs, KYC norms, thus enabling a better understanding.

PIVOT has played an active role, being engaged with SEBI FII Division, Stock Exchanges, Industry initiatives, Developing FPI structure for the leading Custodian, engaged with the worlds largest Custodian in developing the FPI space. Some of the key activities being:

  • Devising and implementation of an unique FPI offering for StockHolding, the largest Custodian of India
  • Co-hosting a FPI marketing workshop with National Stock Exchange on FPI Marketing- For Custodians and CPAs
  • Co-ordinating the hosting of the first India FPI Roadshow in New York, by BSE and Bank of New York Mellon
  • Assisting signing of MOU between BSE- Bank of New York Mellon for accepting AAA securities as collateral, from FPIs
  • Developing marketing tools and market Intelligence wrt. FPIs
  • Structuring and Moderating a Global Telecall for FPIs on Union Budget. The first by a Stock Exchange, it had leading Economist/ Researchers, Exchange, Clearing Corp, CPA as panelists. Call in time zones of Australia, Japan, Hong Kong, Singapore, Europe and USA
  • Knowledge partner for BSE-ICCL workshop on Marketing to FPIs- especially Category III for Industry. Attendees being Custodian (domestic/ Foreign), Banks, Legal Firms, Prominent Accounting firms
  • Partnered Regulation Asia, Hong Kong in the hosting of the first India Regulatory Summit 2015, at Four Seasons, Mumbai. Conceptualized and Moderated the FPI panel comprised of SEBI, NSE, StockHolding, Ernst and Young, Credit- Suisse (Broking).
  • Developed FPI related relationships with Wadia Ghandy, Venture Intelligence, Regulation Asia, Abax Consulting, AZB partners, Finsec Law Advisors, Banks, leading CPA firms and others
  • Hosted separate page on website as well as new Facebook link covering articles etc related to FPI, including MAT
  • Providing inputs to a leading Global Custodian, planning to invest in India
  • Devising and Implementation of a FPI offering Roadmap for a leading Broking entity
  • Conceptualizing, Knowledge partner, selecting speakers, moderating the first ever Nationwide FPI workshop/ seminar” All you wanted to know about FPI’s ”for BSE- ICCL. Successfully held across 6 key Indian cities with speakers from 18 leading Institutions, over 550 attendees (Mumbai and Delhi) from Institutional Brokers, Wealth Managers, Investment Bankers, PEs, Corporates, Custodians- this was the biggest familiarizing event wrt. FPI’s
We continue investing in thought leadership, market advocacy, developing best practices that assist in developing the segment, our clients- whether Exchanges, DDPs etc, in setting up their FPI offering and in implementing the Marketing and Product Development strategies. We are also equipped to assist FPIs looking to access the market.