Bigger India
Custodians Rush to Sebi Over Curbs on NRI Investment in FPIs
The new regulatory restrictions spell out that NRIs can neither be “beneficial owners” of FPIs nor “control” the investment management company.
Foreign and local custodians, which function as the vital link between foreign portfolio investors (FPIs) and the Indian stock market, have rushed to the markets regulator to figure out the fate of several offshore funds linked to non-resident Indians (NRIs). These funds have been impacted by a new rule by the Securities and Exchange Board of India (Sebi) curbing NRI investment and control on FPIs.