Overview

• SEBI has invited public comments until August 29 on its consultation paper proposing to simplify resident Indians’ participation in FPIs.
• The regulator would allow IFSC-based retail schemes with at least 20 investors, no single investor stake above 25% and a 10% cap on company exposure to register as FPIs.
• Under the proposals, resident Indian non-individuals’ contribution limits would rise to 10% of assets under management, matching IFSCA regulations.
• Terminology for IFSC-based FPIs would shift from “sponsor/manager” to “Fund Management Entity or its associate” to align with IFSCA nomenclature.
• Indian mutual funds meeting SEBI’s November 2024 conditions could become constituents of overseas funds or unit trusts registering as FPIs, boosting cross-border diversification.