A Foreign Portfolio Investor (FPI) is a non-resident entity or individual that invests in Indian securities such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs) under the SEBI (Foreign Portfolio Investors) Regulations, 2019. FPIs include sovereign wealth funds, pension funds, mutual funds, hedge funds, insurance companies, family offices, endowments, and offshore asset managers. You must register with SEBI through a Designated Depository Participant (DDP) before you can invest in Indian markets as an FPI.
Who is eligible to register as an FPI
You can register as an FPI if you are a non-resident entity or individual seeking to invest in Indian securities. Your home country must meet both of the following conditions:
- Its securities market regulator must be a signatory to SEBI's Memorandum of Understanding (MoU) or a member of the International Organization of Securities Commissions (IOSCO) Multilateral MoU.
- Your resident country must not appear on the Financial Action Task Force (FATF) public statement for money laundering or terrorism financing concerns.
Resident Indians are not eligible to register as FPIs. NRIs and OCIs are generally not permitted to register as FPIs in their individual capacity, except in certain permitted jurisdictions and structures such as IFSC Gift City-based FPIs, subject to SEBI conditions.
SEBI classifies FPIs into two categories under the 2019 regulations:
- Category I covers low-risk, highly regulated investors including sovereign wealth funds, central banks and government agencies, multilateral organisations, pension funds, and well-regulated foreign funds whose investment manager is from a FATF-compliant jurisdiction.
- Category II includes investors that do not qualify under Category I, including regulated funds, banks, asset managers, insurance companies, portfolio managers, family offices, and other institutional investors.
How to register as an FPI
- Determine your category (Category I or Category II) based on your investor type.
- Create a user ID on the NSDL FPI portal (fpi.nsdl.co.in).
- Fill out the Common Application Form (CAF) on the NSDL portal, either directly or through a global custodian. The CAF allows you to apply simultaneously for FPI registration, PAN, KYC registration, and bank and demat account opening.
- Upload your supporting KYC documents along with the CAF.
- Submit the application electronically to your appointed Designated Depository Participant (DDP) in India.¹
- Your DDP reviews the application and, if satisfied, forwards it to the Income Tax Department for Permanent Account Number (PAN) generation.
- Your DDP issues your FPI registration certificate after you pay the prescribed fees.²
You can sign your CAF and registration documents using a Digital Signature Certificate (DSC). In January 2026, SEBI integrated DSC application directly within the CAF portal, allowing you to complete FPI registration and obtain a DSC in one unified process. Detailed process flows and FAQs are available at indiamarketaccess.in/faqs-on-registration.
Documents required
Your documentation requirements depend on your category and investor type, but generally include:
- Proof of existence (Certificate of Incorporation, financial statements, or Tax Identification Number)
- KYC documents, certified or notarised
- Memorandum of Association (MOA) and Articles of Association (AOA), if you are a company
- Board Resolution (BR) and authorised signatory list (not required if SWIFT is used as a medium of instruction)
- Ultimate Beneficial Owner (UBO) declaration (not required for government and government-related entities)
- FATCA and CRS declarations
- Declaration of compliance with anti-money laundering laws
All KYC documents must be certified or notarised. Alternatively, SWIFT confirmation is accepted (subject to DDP's internal policy).
What you can invest in
Once registered, you can invest in:
- Listed equity shares, warrants, and debentures of public limited companies
- Commodity segment (Only Natural gas and Crude oil)
- Units of domestic mutual funds (equity and debt schemes)
- Units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)
- Exchange-Traded Funds (ETFs)
- Government bonds and corporate bonds through designated RBI channels (Fully Accessible Routes and Voluntary Retention Routes)
- Securities issued by the RBI
- Non-Convertible Debentures (NCDs) issued by listed Indian companies
Your individual FPI stake in any single company cannot exceed 10% of the company's paid-up equity capital, and the investment limit in a company is generally 24% of paid-up equity capital, unless the company increases the limit through shareholder approval up to the applicable sectoral/statutory cap. If you breach the 10% threshold, you must divest the excess holding or reclassify it as Foreign Direct Investment (FDI) within five trading days.
Compliance requirements
As a registered FPI, you must:
- Renew your registration and KYC every three years (a unified 10-year cycle is available under the SWAGAT-FI framework for eligible categories such as sovereign wealth funds, central banks, and regulated retail funds)
- Submit KYC and transaction reports as required
- Disclose ultimate beneficial owners³
- Comply with SEBI regulations, FEMA (Foreign Exchange Management Act) provisions, and applicable tax requirements
For a consolidated view of all FPI regulations, onboarding guidance, and market information, visit What is India Market Access?
As an institutional broker, Zerodha can help you set up a trading account as a foreign investor:
- For foreign individuals: Procedure for a foreign national to open an account at Zerodha
- For foreign entities: Trading account for PMS, AIF, and FPI
Things to keep in mind
- A Designated Depository Participant (DDP) is an entity authorised by SEBI under Chapter III of the FPI Regulations, 2019 to act as a mediator between you and the Board for registration purposes. Your DDP also performs due diligence, KYC review, UBO assessment, risk classification, and ongoing compliance monitoring. You can find a list of approved DDPs on the SEBI website.
- Registration fees vary by category and are payable in three-year blocks for the duration of your registration validity. If you do not pay the fees, SEBI treats your application as surrendered.
- For FPIs holding more than 50% of their Indian equity Assets Under Management (AUM) in a single corporate group, or holding more than ₹50,000 crore of equity AUM in Indian markets, additional granular ownership disclosures apply.