BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
SEBI recently came out with a detailed framework for risk-based Know Your Customer (KYC) documentation of FPIs. What is the meaning of “F” in FPIs?
A
Firstly
B
Freight
C
Foreign
D
Financial
Explanation: 

Detailed explanation-1: -The FII Regulations provide that investments by each FII/ SA shall not exceed ten percent of the total issued capital of an Indian company, while in the FPI regulations the applicable investment limit for each FPI is below ten percent.

Detailed explanation-2: -Regulated by SEBI, the FPI regime is a route for foreign investment in India. The FPI regime came as a harmonised route of foreign investment in India, merging the two existing modes of investment, that is, Foreign Institutional Investor (’FII’) and Qualified Foreign Investor (’QFI’).

Detailed explanation-3: -SEBI circular for KYC Registration Agency (KRA), April 2022 The circular, dated April 6, 2022, requires the KRAs (SEBI KYC Registration Agencies) to verify the KYC records of clients within two days of the document being received.

Detailed explanation-4: -With regard to position limits, Sebi said that FPIs other than individuals, family offices and corporates can participate in eligible commodity derivatives products as clients. They will be subject to all rules and position limit norms. in a particular commodity derivative contract.

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