Foreign Institutional Investor (FII)
A Foreign Institutional Investor (FII) is an investor or investment fund that is from or registered in a country outside of the one in which it is currently investing. Institutional investors include hedge funds, insurance companies, pension funds and mutual funds. The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market.
For acceptance as an FII, relevant forms and documents need to be submitted with SEBI:
Registration & Eligibility
Who can get registered as FII?
The following entities/funds are eligible to get registered as FII:
Further, following entities proposing to invest on behalf of broad based funds, are also eligible to be registered as FIIs:
What are the parameters on which SEBI decides FII applicants’ eligibility?
Which form needs to be filled in when applying for FII registration?
“Form A” as prescribed in SEBI (FII) Regulations, 1995.
Which documents need to be sent with “Form A”?
Where the application for FII registration should be sent?
The FII registration application should be sent to:
Securities and Exchange Board of India
Division of FII & Custodian
Plot No. C4-A, ‘G’ Block,
Bandra Kurla Complex,
Bandra (East), Mumbai – 400 051
How many days it takes to get registered as FII?
SEBI generally takes seven working days in granting FII registration. However, in cases where the information furnished by the applicants is incomplete, seven days shall be counted from the days when all necessary information sought, reaches SEBI.
How much is the fee for registration as FII?
US $ 10,000
When is the registration fee payable?
At the time of submitting the application for registration.
What is the mode of payment?
Demand Draft in favour of “Securities and Exchange Board of India” payable at New York.
In cases where the applicant is a bank and subsidiary of a bank, SEBI seeks comments from the Reserve Bank of India (RBI). In such cases, 7 working days would be counted from the day no objection is received from RBI.