Securities and Exchange Board of India [SEBI] has amended the instructions for filling applications for registration of a Foreign Institutional Investor [FII] and sub-account of FII. Applicants are now required to provide additional declarations and undertakings along with the application form for registration of FII / sub-account of FII.
a) The applicant declares that it is not a Protected Cell Company (PCC] or Segregated Portfolio Company (SPC] and does not have an equivalent structure by whatever nomenclature.
b) The applicant declares that it is not a Multi Class Share Vehicle (MCV] by constitution and does not have an equivalent structure by whatever nomenclature. It contains only single class of share.
c) The applicant declares that it is a MCV by constitution and has more than one class of shares or has an equivalent structure and that a common portfolio is maintained for all classes of shares and satisfies broad based criteria.
c) A segregated portfolio is maintained for separate classes of shares wherein each such class of shares are in turn broad based.
[To be provided by an applicant which is / proposed to be a MCV or an equivalent structure and have more than one class of shares]
a) Common portfolios shall be allocated across various share classes and it shall be broad based;
a) If portfolios are segregated for each distinct share class, then each such share class shall satisfy the broad based criteria;
b) In case of change in structure/ constitution/! addition of classes of shares, prior approval of SEBI shall be taken;
c) In case of any addition of share classes, it shall follow the criteria at (a) above.
Source: Instructions for filling in the Form A and Form AA issued by SEBI.