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:

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:

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 ( [email protected] ) at SOTERIS PITTAS & CO LLC,

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

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