Global private banks ask FPI managers not to sell NRI clients’ investments
Besides, an NRI controlled investment manager (or the asset management company) running an FPI must register itself as a ‘non-investing FPI’ with Sebi.
Synopsis
FPIs have to bring down the aggregate contribution of NRIs and OCIs (along with resident Indians) in a fund to below 50% by December 31, 2020. Also, contribution by an NRI/OCI cannot exceed 25%. Funds which fail to do this will have to wind up in six months.
MUMBAI: Global private banks, dealing with the rich and ultrarich, have told managers of foreign portfolio investors (FPIs) to refrain from selling off investments by their non-resident Indian (NRI) and overseas citizens of Indian (OCI) clients to meet the rules laid down by Securities & Exchange Board of India (Sebi).