The enormous and highly promising Indian market has now come within reach for Cypriot-regulated funds and regulated fund managers. On Monday 14th of June, India's Ministry of Finance issued an order specifying that the Republic of Cyprus is now classified as a "Category I" country for the purposes of Regulation 5 (a)(aiv) of SEBI (Foreign Portfolio Investors) Regulations.

According to the SEBI (Foreign Portfolio Investors) 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 to enhanced trading limits and are also eligible to invest in ODIs.

This 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", comments Andreas Yiasemides, CIFA president. Cyprus is 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.

Cyprus’ Collective Investment sector aligns with all the latest EU regulations relating to UCITS, Alternative Investment Funds and their Managers. 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.