The SEBI (Mutual Fund) Regulations, 1996 inter alia permit AMCs to provide management and advisory services to certain categories of foreign portfolio investors (‘FPI’). By way of circular dated December 16, 2019, SEBI has now, with immediate effect, specified the following categories of FPIs for the purposes of this regulation: (i) Government and Government related investors such as central banks, sovereign wealth funds, international or multilateral organizations or agencies including entities controlled or at least 75% directly or indirectly owned by such Government and Government related investor(s), (ii) appropriately regulated entities such as pension funds, insurance or reinsurance entities, banks and mutual funds, and (iii) appropriately regulated FPIs wherein entities specified under (i) or (ii) above hold more than 50% of the shares/ units. Further, for existing agreements entered into by AMCs to provide management and advisory services to FPIs not falling within the above specified categories, SEBI has clarified that such AMCs may continue to provide such services for the period mentioned in the agreement or December 15, 2020, whichever is earlier.