Broad Based Fund
Broad based fund means a fund established or incorporated outside India, which has at least 20 investors with no single individual investor holding more than 49 percent of the shares or units of the fund. If the broad based fund has institutional investor(s), then it is not necessary for the fund to have 20 investors. Further, if the broad based fund has an institutional investor who holds more than 49 percent of the shares or units in the fund, then the institutional investor must itself be a broad based fund.
In India, the following entities proposing to invest on behalf of broad based funds, are eligible to be registered as FIIs:
(1).Asset Management Companies (2).Investment Manager/Advisor (3).Institutional Portfolio Managers (4).Trustee of a Trust and (5).Bank