Foreign Portfolio Investors

From Local Broker to Global Investor

Steps to Open an Investment Account

  • Open a Trading Account.
  • Set up a Custodian, DEMAT, and Rupee Bank Account through a SEBI-approved Qualified Depository Participant (QDP) who also serves as a Custodian.
  • Obtain a Unique Income Tax Code via the Custodian QDP.

For assistance, reach out to Mr. Prem Kumar Harikrishnan at +91 70218 00802.

Investor using mobile phone

Our Investment Asset Classes under FPI

Listed Equities
Mutual Funds - Both Equity and Debt Schemes
Corporate Bonds

Eligibility Criteria for FPI Investments

Foreign individuals or entities from countries that are members of the Financial Action Task Force (FATF) or nations with which SEBI has signed a bilateral or multilateral agreement can invest in India. Additionally, NRIs who do not have a PIS account or those who have closed all NRI DEMAT accounts in India can also invest through this route.

SEBI building

Process to Invest via the FPI Route

To invest, appoint a SEBI-registered Stock Broker, who will assist in:

  • Opening a Trading Account
  • Setting up a Custodian, DEMAT, and Rupee Bank Account with a SEBI-approved QDP Custodian
  • Applying for a Unique Income Tax Code through the Custodian QDP
Growing stock market chart

FPI Investment Process & Guidelines

Once investment decisions are made based on either the Stock Broker’s analysis or the investor’s own research, the FPI can Place orders directly with the Stock Broker or Route them through the Custodian’s Order Management System, provided by many QDPs. Investors will have real-time access to order and trade status through an online system

SEBI building

Important Information

Business Commencement Timeline

Upon submission of all required documents (FULL PACK) with signatures, the investor will be ready to transfer funds and begin investing within 3 to 4 weeks. The processing time primarily depends on obtaining a Tax Code (PAN Card), which involves a government agency.

Trade Execution & Settlement

  • Once trades are executed, the Custodian manages the settlement of securities and funds, requiring no further action from the investor
  • Investors will receive detailed reports covering trade records, end-of-day balances, and valuations for their Trading Account, Bank Account, Custodian Account, and DEMAT Account.
  • Withholding tax deductions and payments to the Indian government will be handled by the Custodian.
  • If a tax refund is applicable due to losses in subsequent transactions, it must be claimed by filing an Income Tax Return in India. The Stock Broker or QDP can assist in this process through a tax consultant for an additional fee.

Regulatory & Repatriation Guidelines

Once investment decisions are made based on either the Stock Broker’s analysis or the investor’s own research, the FPI can:

  • Investments under the FPI route are subject to specific limits, which vary for different asset classes. Monitoring these limits is the responsibility of the Custodian QDP.
  • Funds invested can be repatriated at any time based on the FPI’s instructions.

Eligible Countries for FPI Investments

Foreign entities from the following countries qualify for investment in Indian financial markets:

Australia, Austria, Bahrain, Belgium, Brazil, Bulgaria, Canada, China, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hong Kong, Hungary, Iceland, Italy, Japan, Korea, Lithuania, Luxembourg, Malta, Mexico, Netherlands, New Zealand, Norway, Oman, Poland, Portugal, Romania, Russia, Saudi Arabia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, UAE, UK, USA.

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