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Foreign portfolio investors (FPIs) operating from International Finance Service Centres (IFSCs) and regulated by International Financial Services Centres Authority (IFSCA) can invest in all mutual fund schemes other than thematic funds, clarified SEBI.
SEBI said, “Such FPIs shall be allowed to invest in mutual fund schemes other than the schemes in the category of “thematic” as defined in SEBI circular.”
Further, AMCs can provide management and advisory services to such FPIs, said SEBI. However, in case where such FPIs invest in equity or equity derivative securities, they cannot take contra position at least for six months from the date of execution of transaction, clarified SEBI.
SEBI said, “For investment in equity and equity derivative securities listed on recognized stock exchanges in India, such FPI shall not take contra-position for a period of six months from the date of purchase or sale of such securities.”
