In a move towards lighter-touch regime, 80% FPIs classified as Category-I

Prior to the reclassification, less than 3% of the FPIs were part of Category-I and more than four-fifths were part of Category-II.

Nearly 80 per cent of foreign portfolio investors (FPIs) have been classified as Category-I, hinting at a far more liberalised regime for these investors. This may mean easier access, simplified know-your-customer (KYC) and documentation requirements, and fewer investment restrictions for a majority of FPIs, especially broad-based funds and pooled vehicles that were earlier part of Category-II. Prior to the reclassification, less than 3 per cent of the FPIs were part of Category-I and more than four-fifths were part of Category-II. About 13 per cent of the funds were classified as Category-III. 

FPIs in Category-II will not be able to subscribe