Sberbank becomes first Russian bank to register with Sebi as FPI: NSDL

Joins five other from Russia to obtain FPI registration

Sberbank of Russia has become the first Russian bank to register with the Indian markets regulator as a foreign portfolio investor (FPI), according to data available on the website of National Stock Depository (NSDL).

Sberbank of Russia, a state-owned bank which already has a presence in India, registered with the Indian markets regulator for a Category I FPI licence last week.

FPIs with category I licence have to follow less lenient beneficial ownership disclosures, can subscribe to overseas derivative instruments which have Indian stocks as underlying and also enjoy certain taxation benefits.

Category I FPI registration is only granted to government or government related foreign investors or regulated entities such as banks, sovereign wealth funds, investment trusts, pension funds, asset management companies.

Sberbank’s registration takes the total number of Russia-based FPIs in India to five, with all others being non-banks. Till now, Alfa Capital Management, First Asset Management, Igor Noskov, and Vesvolod Rozanov have been granted FPI registrations.
 

Sberbank received approval from the Reserve Bank of India (RBI) in May 2010 to set up a branch in India and commenced its banking business from January 2011. 

It acts as a key partner for Indian and Russian companies in facilitating bilateral trades.

Industry experts expect a few more banks to follow Sberbank’s suit.