RBI simplified foreign portfolio investment norms

The Reserve Bank of India (RBI) simplified foreign portfolio investment norms by putting in place an easier registration process and operating framework to attract inflows.
The portfolio investor registered in reference to SEBI guidelines is known by Registered Foreign Portfolio Investor (RFPI).
 Registered Foreign Portfolio Investor (RFPI)

  • Purchase and sell shares and convertible debentures of Indian companies through a registered broker on recognized stock exchanges in India as well as purchase shares and convertible debentures, which are offered to public in terms of relevant SEBI guidelines, it said.
  • Also acquire shares or convertible debentures in any bid for, or acquisition of, securities in response to an offer for disinvestment of shares made by the Central Government or any State government.
  • Would be eligible to invest in government securities and corporate debt, subject to limits specified by the RBI and SEBI from time to time.
  • All investments made by that FII/QFI in line with the regulations prior to registration as RFPI shall continue to be valid and taken into account for computation of aggregate limit.
  • Might offer cash or foreign sovereign securities with AAA rating or corporate bonds or domestic government securities, as collateral to the recognized stock exchanges for their transactions in cash as well as derivative segment of the market.

Note: The existing portfolio investor class viz. Foreign Institutional Investor (FII) and Qualified Foreign Investor (QFI) registered with SEBI included under RFPI.