Foreign Portfolio Investment (FPI)
Regulatory Framework in India
FPIs are registered foreign investors permitted to invest in Indian capital markets under the SEBI (Foreign Portfolio Investors) Regulations, 2019. The regulations replaced the earlier FII (Foreign Institutional Investor) and QFI (Qualified Foreign Investor) categories with a unified FPI framework. FPIs are categorised into Category I (government entities, central banks, sovereign wealth funds, multilateral organisations) and Category II (regulated entities like banks, mutual funds, pension funds, insurance companies). Registration is done through Designated Depository Participants (DDPs) — NSDL and CDSL monitor investment limits jointly.
- Governing legislation: SEBI (FPI) Regulations, 2019 (amended August 2023); FEMA (Transfer or Issue of Security by a Person Resident Outside India) Rules, 2019.
- Aggregate FPI ownership in any listed Indian company is capped at 24% of paid-up equity capital (extendable to sectoral FDI cap via board resolution).
- Individual FPI holding below 10% is classified as portfolio investment; at or above 10% it is reclassified as FDI.
- FPIs can invest in equities, corporate bonds, G-Secs, T-Bills, REITs, InvITs, and units of domestic mutual funds.
- Debt investment: FPIs restricted to G-Secs with minimum residual maturity of 1 year; prohibited from purchasing T-Bills (SEBI circular, April 2014).
● Tracked since March 01, 2026 · last seen March 27, 2026 · updates as the daily brief publishes