As per the circular by SEBI dates 5th November 2019, the classifications of FPIs have changed. Now there are only two categories Cat 1 and Cat 2, classified as under.
Category I
a) Government and Government related investors such as central banks, sovereign wealth funds, international or multilateral organizations or agencies, including entities controlled, or at least 75%, directly or indirectly, owned by such Government and Government related investor(s);
(b) Pension funds and university funds;
(c) Appropriately regulated entities such as insurance or reinsurance entities, banks, asset management companies, investment managers (‘IMs’), investment advisors, portfolio managers, broker dealers and swap dealers;
(d) Entities from the Financial Action Task Force (‘FATF’) member countries which are:
Appropriately regulated funds;
Unregulated funds whose IM is appropriately regulated and registered as a Cat I FPI -Provided that the IM undertakes the responsibility of all the acts of commission or omission of such unregulated fund;
University related endowments of such universities that have been in existence for more than five years;
(e)An entity:
Whose IM is from FATF member country and such an IM is registered as Cat I FPI; or
Which is at least 75% owned, directly or indirectly by another entity, eligible under sub-clause (ii), (iii) and (iv) above, and such an eligible entity is from a FATF member country.
Category II
Include all the investors not eligible under Category-I Foreign Portfolio Investor such as
a) Appropriately regulated funds not eligible as Category-I foreign portfolio investor;
b) Endowments and foundations;
c) Charitable organisations;
d) Corporate bodies;
e) Family offices;
f) Individuals;
g) Appropriately regulated entities investing on behalf of their client, as per conditions specified by the Board from time to time;
h) Unregulated funds in the form of limited partnership and trusts.
i) Others