Foreign Institutional Investment or investors

One who propose to invest their proprietary funds or on behalf of “broad based” funds or of foreign corporate and individuals and belong to any of the under given categories can be registered for FII.

  • Pension Funds
  • Mutual Funds
  • Investment Trust
  • Insurance or reinsurance companies
  • Endowment Funds
  • University Funds
  • Foundations or Charitable Trusts or Charitable Societies who propose to invest on their own behalf, and
  • Asset Management Companies
  • Nominee Companies
  • Institutional Portfolio Managers
  • Trustees
  • Power of Attorney Holders
  • Bank

An application for registration has to be made in Form A, the format of which is provided in the SEBI(FII) Regulations, 1995 and submitted with under mentioned documents in duplicate addressed to SEBI as well as to Reserve Bank of India (RBI) and sent to the following address within 10 to 12 days of receipt of application.

Address for application
The Division Chief
FII Division
Securities and Exchange Board of India,
224, Mittal Court, ‘B’ Wing, 1st Floor,
Nariman Point, Mumbai – 400 021.

Supporting documents required are

  • Application in Form A duly signed by the authorised signatory of the applicant.
  • Certified copy of the relevant clauses or articles of the Memorandum and Articles of Association or the agreement authorizing the applicant to invest on behalf of its clients
  • Audited financial statements and annual reports for the last one year, provided that the period covered shall not be less than twelve months.
  • A declaration by the applicant with registration number and other particulars in support of its registration or regulation by a Securities Commission or Self Regulatory Organisation or any other appropriate regulatory authority with whom the applicant is registered in its home country.
  • A declaration by the applicant that it has entered into a custodian agreement with a domestic custodian together with particulars of the domestic custodian.
  • A signed declaration statement that appears at the end of the Form.
  • Declaration regarding fit & proper entity.

The eligibility criteria for applicant seeking FII registration
As per Regulation 6 of SEBI (FII) Regulations,1995, Foreign Institutional Investors are required to fulfil the following conditions to qualify for grant of registration: 

  • Applicant should have track record, professional competence, financial soundness, experience, general reputation of fairness and integrity;
  • The applicant should be regulated by an appropriate foreign regulatory authority in the same capacity/category where registration is sought from SEBI. Registration with authorities, which are responsible for incorporation, is not adequate to qualify as Foreign Institutional Investor.
  • The applicant is required to have the permission under the provisions of the Foreign Exchange Management Act, 1999 from the Reserve Bank of India.
  • Applicant must be legally permitted to invest in securities outside the country or its in-corporation / establishment.
  • The applicant must be a “fit and proper” person.
  • The applicant has to appoint a local custodian and enter into an agreement with the custodian. Besides it also has to appoint a designated bank to route its transactions.
  • Payment of registration fee of US $ 5,000.00