![As per the new rules, NRIs, Overseas Indian Citizens and Resident Indians cannot control the applicant FPI. The new rules stipulate that NRIs, overseas citizens of India and resident Indians should not have control over the applicant's FPI.](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=383)
The new rules stipulate that NRIs, overseas citizens of India and resident Indians should not control the applicant FPI.
Sebi has adjusted guidelines for registration of FPIs involving NRIs, Overseas Indian Citizens and Resident Indians as participants of such foreign investors.
The Securities and Exchange Commission has adjusted the Foreign Portfolio Investor (FPI) registration guidelines with regard to non-resident Indians, overseas citizens of India and resident Indians who are participants of such foreign investors.
FPIs applying for registration under the new rules will have to ensure that the contribution of a single NRI or Overseas Citizen (OCI) or Resident Indian of India is less than 25% of their assets, according to the notification.
Additionally, at an aggregate level, the applicant FPI must ensure that its contribution to the corpus is less than 50%.
As per the new rules, NRIs, overseas citizens of India and resident Indians cannot control the applicant FPI.
“Contributions by resident Indian individuals must be made through the liberalised remittance scheme notified by the Reserve Bank of India (RBI) and must be in global funds with less than 50% Indian exposure,” Sebi said.
To this effect, the Securities and Exchange Board of India (Sebi) has amended the FPI Rules with effect from June 25.