The highly promising Indian market is now within reach of Cypriot-regulated funds and regulated fund managers, signalling further growth for the sector.
This week, India’s Ministry of Finance issued an order specifying the Republic of Cyprus is now classified as a “Category I” country for the purposes of SEBI (Foreign Portfolio Investors) Regulations.
According to the SEBI Regulations, appropriately regulated funds and unregulated funds whose investment manager is appropriately regulated and registered as a “Category I Foreign Portfolio Investor” are subject to lighter KYC requirements and enhanced trading limits and are also eligible to invest in ODIs.
The development signals new opportunities for further growth for the fund industry in Cyprus.
“The Indian market offers huge prospects, and the acceptance of Cyprus funds allows us to step up our efforts to attract investors from India,” said Andreas Yiasemides, Cyprus Investment Funds Association president.
Cyprus is seen as the ideal investment gateway to the European Union and a portal for investments outside the EU.
“This opportunity is now open for the Indian market as well. As a member of the wider EU and Eurozone community, Cyprus ensures investors’ safety and stability while also offering them market access to more than 500 million EU citizens,” said Yiasemides.
Cyprus’ Collective Investment sector aligns with all the latest EU regulations relating to UCITS, Alternative Investment Funds and their Managers, CIFA statement said.
“In combination with the low cost required to set up and manage funds and other investment structures, Cyprus is today a uniquely competitive entry point to EU-regulated fund management solutions.”