In September 2019, to ease the regime for investments by foreign portfolio investors (“FPIs”), the Securities and Exchange Board of India (the “SEBI”) notified the SEBI (FPI) Regulations, 2019, which replaced the erstwhile SEBI (FPI) Regulations, 2014. The new regulations categorized FPIs into two different groups namely, Category I and Category II investors, based on their regulatory status and country of residence. The SEBI wanted to be certain that the FPI entity investing in India invested from a country that was a Financial Action Task Force (“FATF”) member country, which means from a country that had in place adequate strategies to combat money laundering and terrorism financing. The FATF requirement impacted FPIs from non-FATF countries such as Mauritius, the Cayman Islands, the United Arab Emirates, and Taiwan.