Sebi lets AMCs provide advisory services to all FPIs at IFSC

By Siddhant Mishra

The Securities and Exchange Board of India (Sebi) on Friday said asset management companies can now provide management and advisory services to all foreign portfolio investors (FPIs) operating out of the International Financial Services Centres (IFSCs) and regulated by the International Financial Services Centres Authority.

This is with the condition that FPIs invest only in mutual funds schemes other than those under the “thematic” category, as defined by Sebi.

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As regards investment in equity and equity derivative securities listed on the recognised stock exchanges in India, such FPIs cannot take a contra-position for six months from the date of purchase or sale of such securities.

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Earlier, the regulator had permitted AMCs to provide advisory services to FPIs that were government-related investors – central banks, sovereign wealth funds, international or multilateral organisations/agencies, including firms controlled by or at least owned 75% by government-related investors.

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It also allowed FPIs that were appropriately regulated entities, such as pension funds, insurance/reinsurance firms, banks and fund houses.