What are the new rules introduced by SEBI for some FPIs

SEBI, the Securities and Exchange Board of India, has indeed introduced new rules for certain Foreign Portfolio Investors (FPIs) in September 2020. These rules aim to categorize and streamline the registration process for FPIs and to ensure better monitoring. The key points of the new rules are as follows:

FPIs are now categorized into mutually exclusive categories: Category I, Category II, and Category III. These categories are based on the nature of the entity, location, and regulation.
Category I FPIs are viewed as low-risk and will have easier registration and compliance requirements.
Category II FPIs include mutual funds, banks, pension funds, and other regulated entities. They will have medium-risk status.
Category III FPIs are the rest, including individuals and family offices. They will have a higher risk classification and stricter compliance requirements.
Moreover, the new rules also introduce stricter norms for beneficial ownership and enhanced due diligence.

Regarding the opinion of the Congress party on these rules, I couldn't find any specific statement or position expressed by them. As political perspectives can vary, it is recommended to refer to official statements or party spokespersons for a more accurate account of their opinion.

ID	6961
Votes	0
Added	01 Jul 2023
Updated	11 Mar 2025
Subject	Economy