DelhiDesk Three investors based in Moscow have been granted Foreign Portfolio Investor (FPI) licenses by the Securities and Exchange Board of India (SEBI). The investors include Alfa Capital Management Company, registered in both categories 1 and 2, and individual investor Vsevolod Rozanov, who is registered in category 1. The licenses are valid for three years until early 2026. Experts suggest that Russian investors are exploring Indian markets due to sanctions imposed on Russia by the US and the European Union following its invasion of Ukraine in February 2022. The significance of SEBI’s registration of the three entities could initiate substantial capital inflows to India.

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👉 Three investors from Moscow have obtained FPI licenses from Sebi, with Alfa Capital Management Company being registered in both category-1 and category-11.

👉 The license issued to them is valid for three years till early 2026, marking the first time Russian investors have opted for the FPI route to invest in India.

👉 Experts believe that Russian investors are exploring Indian markets due to sanctions imposed on the country by the US and European Union following Russia’s invasion of Ukraine in February 2022.

👉 Geographical diversification is seen as good for India, with the annual bilateral trade surplus between Russia and India ranging from USD 20-30 billion.

👉 Sebi has to be stringent in disclosures since the FPI investment in Adani stocks has created controversy.

👉 Apart from Russia, there are at least 16 China-based institutions that have permanent registration as FPIs in India, with 217 Hong Kong-based entities and 124 from Taiwan also registered.

👉 FPIs have been classified into two categories since 2014, with all registered Foreign Institutional Investors (FIIs) deemed registered as FPIs after the shift to this new regime.

👉 The US has the largest number of registered FPIs followed by Luxembourg, Canada, Ireland, the UK, Mauritius, and Singapore.

👉 Together, the top ten countries in terms of assets under custody of FPIs account for 83% of the overall assets under custody of FPIs.

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