SEBI Updates Rules For Foreign Portfolio Investors

The Securities and Exchange Board of India has come up with an update for foreign portfolio investors. In a circular released on Wednesday, the market regulator talks about how FPIs should disclose information following recent changes to the SEBI Regulations, 2019.

The regulatory body has divided the important changes into Type I and Type II. Type I changes will need immediate attention. FPIs are to report these changes within seven working days and submit any supporting documents within 30 days. ⁤

These include situations like becoming ineligible for registration, needing to get fresh registration, or changes affecting the FPI's ability to make new investments. Other examples are changes in jurisdiction, mergers, restructures, or shifts in compliance status. ⁤

Type II changes are less urgent but still important. ⁤⁤ These must be reported within 30 days. ⁤⁤For example, deleting sub-funds or similar structures that invest in India falls under Type II. ⁤⁤ Essentially, any other significant changes not classified as Type I are considered Type II. ⁤

Designated Depository Participants have a key role in this process. ⁤⁤ They are responsible for reviewing all reported changes and reassessing the FPI's eligibility. ⁤⁤ For certain Type I changes, FPIs will have to apply for fresh registration. ⁤⁤ If there's any delay in reporting these changes, DDPs will need to inform SEBI within two working days to ensure timely and appropriate action. ⁤