• Home
  • Regulatory Authorities

Sets policy direction and legislative framework for FPI investments.

  • Designs overall FDI and FPI policy for India.
  • Engages in treaty negotiations (e.g., Double Taxation Avoidance Agreements).
  • Coordinates tax policies and incentives related to foreign investors.
  • May introduce reforms or liberalize sectors for FPI access.
  • Oversees implementation of international economic agreements.

Regulates foreign exchange and monetary aspects of FPI investments

  • Manages India’s Foreign Exchange Management Act (FEMA).
  • Sets investment limits and conditions in various sectors.
  • Provides operational guidelines on repatriation and fund transfers.
  • Coordinates with SEBI on investment limits in debt and government securities.
  • Monitors macroeconomic impact of foreign portfolio flows.

Primary regulator for FPIs in India

  • Registers and regulates Foreign Portfolio Investors.
  • Issues guidelines and operational frameworks for investment.
  • Monitors compliance, reporting, and disclosure norms.
  • Categorizes FPIs into different risk-based categories.
  • Ensures transparency and investor protection in capital markets.

Ensures taxation compliance by FPIs

  • Governs tax liability on capital gains, dividends, and interest income.
  • Handles matters related to tax treaties and exemptions.
  • Monitors compliance with General Anti-Avoidance Rules (GAAR).
  • Issues PAN and assesses withholding obligations.
  • Updates tax norms and clarifications for FPIs.