Why India is the FPI gateway for Cyprus-based investors

Over the past few years, we’ve chronicled Finvasia’s expansion into Europe and the introduction of Indian-origin financial innovation to the EU. This month, the spotlight turns the other way. With the launch of the India-Greece-Cyprus Business and Investment Council and an upcoming EU-India strategic summit, capital is starting to flow eastward – from Cyprus into India.

This shift isn’t just diplomatic; it reflects a rising institutional appetite for exposure to India’s financial markets. As India scales up in size, liquidity and global relevance, Cyprus-based investors are actively exploring opportunities in Asia’s most dynamic economy.

We sat down with Ramneek Ghotra, Chief of Growth at Finvasia, to understand why India is now a preferred destination for Cyprus Foreign Portfolio Investments (FPIs) and how Shoonya by Finvasia is making that journey seamless, fast and compliant.

Why should Cyprus-based investors consider India for portfolio investment?

India remains the world’s fastest-growing major economy. The IMF projects GDP growth of 6.2% for the 2025 financial year. That’s driven by a young population, digital transformation and an expanding middle class. For Cypriot investors, this translates into access to high-growth sectors – like tech, financial services and manufacturing – in a market that’s not just emerging but is becoming central to the global economy.

Are India’s financial markets deep and liquid enough for foreign portfolio investors?

Definitely! India’s National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) have a combined market capitalisation of over US$5.05 trillion. The NSE alone continues to be the world’s largest derivatives exchange by volume and ranks third globally in equity trades. With nearly 12,000 FPIs registered with the Securities and Exchange Board of India SEBI, the market shows both depth and global investor confidence. Entry and exit liquidity are strong, even for large institutional positions.

How robust is India’s regulatory framework for foreign investors?

India’s markets are regulated by SEBI, which is known for its strong governance and investor protection. India was among the first to move to a T+1 settlement cycle – that’s faster than most global peers. The rules are transparent, with a well-defined FPI regime. Investors operate within a stable, rules-based environment, making compliance straightforward.

What tax advantages does Cyprus enjoy under its treaty with India?

The India-Cyprus Double Taxation Avoidance Agreement (DTAA) provides clarity and safeguards against double taxation. Interest and dividends are subject to a capped 10% withholding tax. While capital gains on post-2017 securities are taxable in India, Cypriot investors can claim tax credits in Cyprus. This ensures that taxation is not duplicated across jurisdictions.

Is currency volatility a major concern?

Currency is always a factor in cross-border investing. The Indian rupee (INR) has remained relatively stable against major currencies and the Reserve Bank of India actively manages volatility. Cypriot investors can also hedge INR exposure through futures and options listed on NSE and BSE. Plus, under the FPI regime, capital and profits are fully repatriable.

What’s the process for a Cyprus-based investor to start investing in India via the FPI route?

The first step is registration with SEBI through a Designated Depository Participant (DDP). Shoonya by Finvasia guides Cyprus investors through the full process – PAN application, KYC, registration and account setup. It typically takes about two weeks. Once onboarded, investors can start trading Indian equities, ETFs, bonds and more, directly from their preferred device.

What makes Shoonya an ideal platform for Cyprus-based investors?

Finvasia’s global presence – deeply rooted in India with operations in Europe and the UAE – gives us an edge. Shoonya, our flagship platform, offers zero brokerage on equity delivery and ultra-low fees across other asset classes. We support FPI onboarding, documentation, compliance and execution, all under one roof. It’s a one-stop solution built for global investors who value clarity and control.

What’s the onboarding experience like with Shoonya?

It’s fast, digital and efficient. We support you through each step, from document prep and FPI registration to account funding. Shoonya works across web, desktop and mobile and supports deposits in euros with easy INR conversion. Our team offers live support during overlapping India-Cyprus business hours. We’ve streamlined compliance processes to suit both Indian and EU regulatory standards.

What sets Shoonya apart from other brokers?

Transparency and cost-efficiency. There are no hidden charges – no account maintenance, documentation or clearing fees. Our clients get dedicated support, including local assistance for Cyprus-based investors. From real-time trading to tax documentation, everything is integrated into the platform. We’re on a mission to democratise finance by eliminating traditional cost and complexity barriers.

What kind of infrastructure powers Shoonya’s trading experience?

Shoonya is backed by an ISO 27001:2022-certified infrastructure – with co-located servers, redundant network systems and real-time risk management. Our data centres offer high uptime and low latency for global traders. We built this platform to support both institutional-grade reliability and retail-grade usability.

A final message to CBN readers?

India is more than a growth market; it’s a structural opportunity. With Shoonya by Finvasia, Cyprus-based investors can tap into that opportunity with confidence for low-cost and seamless execution. As we continue to build bridges between global capital and Indian markets, we welcome more Cypriot investors to be part of this journey.