New Delhi, Aug 4 (PTI) Capital markets regulator Sebi has amended its FPI rules, allowing resident Indian fund managers to be constituents of foreign portfolio investors (FPIs).

The move comes after the board of Sebi approved a proposal in this regard in June.

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In a notification, Sebi said non-resident Indians (NRIs) or overseas citizens of India (OCIs) or resident Indian individuals can be part of FPIs provided they meet the conditions specified by the regulator.

In case of resident Indians other than individuals, they can be the constituents of the applicant if such a person is a fund manager of the FPI or the FPI is an eligible investment fund approved under Income Tax Rules.

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To give effect to this, the Securities and Exchange Board of India (Sebi) has amended FPI rules, according to a notification on Tuesday.

The amendment will bring Sebi's FPI norms in line with the recent amendments in the I-T Act, thereby facilitating Indian fund managers in managing investment funds incorporated or registered outside India.

In a separate circular on Wednesday, Sebi modified operational guidelines for FPIs and designated depository participants following amendment in the FPI rules.

"The contribution of resident Indian individuals shall be made through the Liberalised Remittance Scheme (LRS) notified by Reserve Bank of India and shall be in global funds whose Indian exposure is less than 50 per cent," Sebi said.

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