After a backlash from the FPI lobby group, SEBI on Friday gave relief to foreign fund managers. The market regulator said Category II and III FPIs registered prior to its April circular will have to provide the list of beneficial owners (BOs). This includes non-resident Indians (NRIs) and persons of Indian origin who were completely banned by SEBI from owning any FPI structure or vehicle.
The categorisation of FPIs is based on their risk profile. SEBI finalised the new norms after taking into consideration suggestions from a panel headed by former RBI Deputy Governor HR Khan and comments from the public.