Cyprus Funds eligible as Foreign Portfolio Investors in India


Cyprus Funds eligible as Foreign Portfolio Investors in India


The Minister of Finance of India decided on 14 June 2021, the inclusion of Cyprus in the first category of foreign investment funds. Cyprus has been classified as a ‘Category I’ country, being an approved jurisdiction where funds regulated in Cyprus can be used for the purposes of investing into Indian securities and this fact provides significant advantages for the Cypriot investment funds which will be able to invest more easily and efficiently in India. The Category I FPI includes entities from Financial Action Task Force (FATF) member countries or from any country specified by the Indian government by an order or by way of an agreement or treaty that are:


• Appropriately regulated funds.

• Unregulated funds whose investment manager is appropriately regulated and registered as a Category I FPI.

• University-related endowments of such universities that have been in existence for more than five years.


Cyprus is not directly an FATF member country but following this order from the Indian government, Cyprus-based funds are now able to be registered as Foreign Portfolio Investors (FPIs).


Category I FPIs benefit from the following advantages as well:


• Exemption from the applicability of ‘Indirect Transfer’ provisions under the Indian Income-tax Act.

• Subject to lower ‘Know Your Customer’ (KYC) requirements and enhanced trading limits.

• Eligible to invest in offshore derivative instruments (ODIs).


Such an initiative offers great potential for cooperation between the two countries and creates new opportunities for expanding the Cyprus fund industry.





For further information on this topic please contact

Mrs. Maria Pitta ( ) at SOTERIS PITTAS & CO LLC,

by telephone (+357 25 028460) or by fax (+357 25 028461)



The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstances.


Thursday, 04 April 2024 08:53

On July 1, 2023, the Procedure Rules of the Supreme Court of 2023 were published in the Official Gazette of the Republic of Cyprus and entered into force. According to the said Procedure Rules, from...

Friday, 23 February 2024 09:18

The Supreme Court examining the appeal case No. 298/2014 between Α.Α.Ι. v Dr. M.CH, filed by a patient against a doctor, set aside the first instance Court decision on, inter alia, the ground that...

Thursday, 07 September 2023 11:56

In a recent decision, the Court recognized its power to appoint a Receiver by a way of equitable execution of a judgment.   The case concerned an Application to extend the powers of the Interim...

Thursday, 06 July 2023 09:26

In the very recent decision of Re Mosaica Investments Limited, Petition No. 573/2022 DC. Nicosia, Interim Decision dated 21.02.2023, in the context of a by summons application filed by the...

Wednesday, 28 June 2023 09:47

In a recent case, handled by our law firm, on behalf of a judgment creditor, the District Court of Limassol, upon the application of the judgment creditor – (and after a contested hearing) – issued...

Tuesday, 06 June 2023 11:03

In a very recent case concerning an application for registration, recognition and enforcement of a Partial Final LCIA Arbitral Award in Cyprus, the Cypriot court was called to examine whether the...

Tuesday, 09 May 2023 09:51

In the very recent decision of Re Mosaica Investments Limited, Petition No. 573/2022 DC. Nicosia, Interim Decision dated 21.02.2023, the Cypriot Court, by following relevant English and Cypriot...

Subscribe to our Publications

We are dedicated to providing our clients with outstanding, highly personalized, legal representation.
Chrysanthou Mylona 10 
3030 - Limassol, Cyprus
© Soteris Pittas & Co LLC. All Rights Reserved.