One who propose to invest their proprietary funds or on behalf of "broad based" funds or of foreign corporates and individuals and fit in to any of the under given categories can be registered for FII.
- Pension Funds
- Mutual Funds
- Investment Trust
- Insurance or reinsurance companies
- Endowment Funds
- University Funds
- Foundations or Charitable Trusts or Charitable Societies who propose to invest on their own behalf, and
- Asset Management Companies
- Nominee Companies
- Institutional Portfolio Managers
- Power of Attorney Holders
An application for registration has to be made in Form A, the layout of which is provided in the SEBI(FII) Regulations, 1995 and submitted with under mentioned documents in duplicate addressed to SEBI as well as to Reserve Bank of India (RBI) and sent to the subsequent address within 10 to 12 days of receipt of application.
Supporting documents required for FII registration are:
- Application in Form A duly signed by the authorized participant of the applicant.
- Certified copy of the applicable clauses or articles of the Memorandum and Articles of Association or the agreement authorizing the candidate to invest on behalf of its clients
- Audited financial statements and annual reports for the last one year, provided that the time period covered shall not be less than 12 months.
- A declaration by the candidate with registration number and other particulars in support of its registration or regulation by a Securities Commission or Self Regulatory Organization or any other suitable regulatory authority with whom the applicant is registered in its home country.
- A declaration by the candidate that it has entered into a custodian agreement with a domestic custodian together with particulars of the domestic custodian.
- A signed declaration statement that appear at the end of the Form.
- Declaration with regarding fit & proper entity.
The eligibility criteria for applicant seeking FII registration
As stated by Regulation 6 of SEBI (FII) Regulations, 1995, Foreign Institutional Investors are required to accomplish the following conditions to qualify for grant of registration :
- Applicant should have track record, professional competence, financial soundness, experience, general reputation of justice and integrity;
- The candidate should be regulated by an appropriate foreign regulatory authority in the similar capacity/category where registration is sought from SEBI. Registration with authorities, which are responsible for incorporation, is not adequate to meet the criteria as Foreign Institutional Investor.
- The candidate is required to have the permission under the provisions of the Foreign Exchange Management Act, 1999 from the Reserve Bank of India.
- Candidate must be legally permitted to invest in securities outside the country or its in-corporation / establishment.
- The candidate must be a "fit and proper" person.
- The candidate has to appoint a local custodian and enter into an agreement with the custodian. Moreover it also has to appoint a designated bank to route its transactions.
- Payment of registration fee amount up to US $ 5,000.00