Categories of FPI
A risk based approach of categorisation
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- Categories of FPI
FPIs are broadly registered under two categories depending upon the type of investor.
Category I
- Government and related investors
- Pension funds and university funds
- Appropriately regulated entities such as insurance/ reinsurance entities, banks, asset management companies, investment managers, investment advisors, portfolio managers, broker dealers and swap dealers
- Entities from FATF member countries or any other country specified by the government by an order/agreement/treaty with other sovereign governments, which are :
- Appropriately regulated funds
- Unregulated funds whose investment manager is appropriately regulated and is registered as a Category I FPI
- University related endowments of such universities that have been in existence for more than five years
- Entities whose investment manager is from FATF member country and registered as a category I FPI; or
- Entities which are at least 75% owned, directly or indirectly, by entities from FATF member countries under second, third and fourth category mentioned above
Category II
Category II FPIs shall include all the investors not eligible under Category I FPI such as –
- Appropriately regulated funds not eligible as Category-I FPI
- Endowments and foundations
- Charitable organizations
- Corporate bodies
- Family offices
- Individuals
- Appropriately regulated entities investing on behalf of their client, as per conditions specified by SEBI periodically
- Unregulated funds in the form of limited partnership and trusts