• 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.

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For further information on this topic please contact Mrs. Maria Pitta ( [email protected] ) 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.