In January this year, market regulator Securities and Exchange Board of India (SEBI) had notified FPI regulations to put in place an easier registration process and operating framework for overseas entities seeking to invest in Indian capital markets.
"HSBC Securities Services becomes one of the first designated depository participant in India to register a new FPI on the first day of implementation of the FPI framework notified by market regulator SEBI," HSBC said in a statement.
HSBC has been advising clients on the required processes from account opening to operational set up and post implementation services, it added.
"We are delighted to register a FPI on the first day of the new FPI regulatory framework going live in the Indian market. It is now easier and faster for foreign investors to access the Indian market and this is a positive development for the country which is attracting more interest from overseas investors," Head HSBC Securities Services India Kapil Seth said.
The new notification has replaced the existing Sebi regulations for Foreign Institutional Investors (FIIs) and the new class of investors, FPIs, would encompass all FIIs, their sub-accounts and Qualified Foreign Investors (QFIs).
Under the new norms, FPIs have been divided into three categories as per their risk profile and the KYC (Know Your Client) requirements and other registration procedures would be much simpler for FPIs compared to current practices.
The Category I FPIs, which would be the lowest risk entities, would include foreign governments and government related foreign investors.
Category II FPIs would include appropriately regulated broad based funds, appropriately regulated entities, broad-based funds whose investment manager is appropriately regulated, university funds,university related endowments, pension funds etc.
The Category III FPIs would include all others not eligible under the first two categories.