Sebi to vet pleas for new FPI registrations from neighbouring countries

The Securities and Exchange Board of India (Sebi) has asked designated depository participants (DDPs) to refer all applications for new FPI registrations coming from the neighbouring countries to the regulator for approval.

Market players suggest that the move could be specifically aimed at vetting applicants from China wanting to register as FPIs and may have been prompted by the controversy surrounding the recent increase in stake in HDFC by the People’s Bank of China (PBoC). At present, there are 16 FPI investors coming from China, of which 15 hold Category-I licence.

At present, DDPs grant licences to investors based on the criteria