Rich Russians are looking for safe places to invest their money. Some big Russian banks are thinking about becoming foreign portfolio investors (FPIs) in India. This would allow them to buy and sell Indian stocks.
One of these banks is VTB, Russia’s second largest bank. VTB has asked the Securities and Exchange Board of India (Sebi) for permission to become an FPI. Sebi is the Indian government agency that regulates the stock market.
VTB is controlled by the Russian government, so it may qualify for a special type of FPI registration called Category I. Category I FPIs have more privileges than other FPIs, such as being able to buy and sell Indian stock derivatives.
The Reserve Bank of India (RBI) also needs to approve VTB’s application to become an FPI. The RBI is the Indian central bank.
If VTB is approved to become an FPI, it will be the first Russian bank to do so. This would be a significant development, as it would show that Russian investors are interested in investing in the Indian stock market.