Foreign Portfolio Investor - investment under Portfolio Investment Scheme, Government and Corporate debt

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..... ime to time. 2. The extant guidelines for Portfolio Investment Scheme for Foreign Institutional Investor (FII) and Qualified Foreign Investor (QFI) have since been reviewed and it has been decided to put in place a framework for investments under a new scheme called Foreign Portfolio Investment scheme. 3. The salient features of the new scheme are: The portfolio investor registered in accordance with SEBI guidelines shall be called Registered Foreign Portfolio Investor (RFPI) . The existing portfolio investor class, namely, Foreign Institutional Investor (FII) and Qualified Foreign Investor (QFI) registered with SEBI shall be subsumed under RFPI; RFPI may purchase and sell shares and convertible debentures of Indian compan .....

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..... e is composite sectoral cap under FDI policy, these limits for RFPI investment shall also be within such overall FDI sectoral caps; RFPI shall be eligible to open a Special Non-Resident Rupee (SNRR) account and a foreign currency account with Authorised Dealer bank and to transfer sums from foreign currency account to SNRR account at the prevailing market rate for making genuine investments in securities. The Authorised Dealer bank may transfer repatriable proceeds (after payment of applicable taxes) from SNRR account to foreign currency account ; RFPI shall be eligible to invest in government securities and corporate debt subject to limits specified by the RBI and SEBI from time to time; The investment by RFPI will be made subjec .....

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..... s may bring the contents of the circular to the notice of their customers/constituents concerned. 7. Reserve Bank has since amended the Principal Regulations through the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Second Amendment) Regulations, 2014 notified vide Notification No. FEMA.297/2014-RB dated March 13, 2014, c.f. G.S.R. No. 189(E) dated March 19, 2014. 8. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law. Yours faithfully (Rudra Narayan Kar) Chief General Manager-In- .....

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