Foreigners who wish to invest in the Indian Stock Markets can open a trading and demat account in India by registering themselves as Foreign Portfolio Investors (FPIs)

Categories of FPIs
As per market regulator SEBI, FPIs are classified into 3 categories

Category I includes Government and Government related investors such as Central Banks or Governmental Agencies.

Category II includes appropriately regulated funds or persons such as Mutual Funds, Insurance/Reinsurance companies, Banks, Asset Management Companies, Investment Managers/Advisors, or Portfolio Managers, etc.

Category III includes all others not eligible under Category I and II foreign portfolio investors such as Individuals, Corporate Bodies, Trusts, and Family Offices, etc.

You may check the complete SEBI regulations for FPIs here.

In general, the registration process is simpler and fees are lower for Category I & II type FPIs compared to Category III

Steps involved in registering as a FPI
FPI registration requires mainly appointing the below professionals / service providers

Legal Counsel : To fill out the forms required by the regulatory authorities. This is important to be done correctly because you will need to register with one of the Designated Depository Participants (DDPs) appointed by SEBI.

Tax Advisor : To obtain a PAN (Permanent Account Number) Card and ensure compliance with Tax laws of India for your ongoing activities.

Domestic Custodian : To transact and help with custodial services.

Designated Bank : To open and maintain a foreign currency account and/or a Non Resident Special Rupee Account for your trading.

Trading Member : To execute trades on the stock exchanges.

Clearing Member : For confirmation of trades.

Compliance Officer : For monitoring the compliance of the applicable laws, rules and regulations, notifications, guidelines, instructions, etc. issued by the Board (i.e. SEBI) or the Central Government.

At TradingBells, we offer end to end service as a one stop solution for your FPI registration, trading and settlement needs. Once you register with us, we will take care of all of the above requirements so you don't need to deal with multiple individuals.

How and where can FPIs get started
As a first step, you will need to fill this document and send it to us on fpi@tradingbells.com and cc to helpdesk@tradingbells.com

Once we receive your details, we can advise you on which category of FPIs would you be falling under, the procedure and fees for that category, as well as the lead time and documentation process.

Meanwhile if you have any questions or would like to speak to one of our experts, do write to us on helpdesk@tradingbells.com or give us a call on +91-22-33756300
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