SEBI vide its Notification dated April 07, 2020, notifies SEBI (Foreign Portfolio Investors) (Amendment) Regulations, 2020. It shall come into force on the date of its publication in the Official Gazette i.e. April 07, 2020.
The Notification amends Regulation 5(a) (iv) of the SEBI (Foreign Portfolio Investors) Regulations, 2019 which prescribes the entities from the Financial Action Task Force as a separate category under which application for registration as Foreign Portfolio Investor (FPI) can be submitted.
The amended Regulation read as follows:
Entities from the Financial Action Task Force member countries, or from any country specified by the Central Government by an order or by way of an agreement or treaty with other sovereign Governments, which are–
I. appropriately regulated funds;
II. unregulated funds whose investment manager is appropriately regulated and registered as a Category I foreign portfolio investor: Provided that the investment manager undertakes the responsibility of all the acts of commission or omission of such unregulated fund;
III. university related endowments of such universities that have been in existence for more than five years.
Thus now not only those entities which are from FATF member countries but also which are from any other country as specified by the Central Government by an order or by way of an agreement or treaty with other sovereign Governments can apply as FPI under this category.
Text of the Notification is as follows:-
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 7th April, 2020
Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2020
No. SEBI/LAD-NRO/GN/2020/09.— In exercise of the powers conferred by sub-section (1) of Section 30 read with sub-section (1) of Section 11, clause (ba) of sub-section (2) of Section 11 and sub-sections (1) and (1A) of Section 12 of the Securities and Exchange Board of India Act, 1992, and under Section 25 of the Depositories Act, 1996, the Securities and Exchange Board of India hereby, makes the following regulations, to further amend the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019, namely,—
(1) These regulations may be called the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2020.
(2) They shall come into force on the date of their publication in the Official Gazette.
(3) In the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019
I. In regulation 5, in clause (a), in sub-clause (iv), after the words “member countries” and before the words “which are”, the words and symbol “, or from any country specified by the Central Government by an order or by way of an agreement or treaty with other sovereign Governments,” shall be inserted.
AJAY TYAGI, Chairman
[ADVT.-III/4/Exty./01/2020]
Footnote:
2. The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 were subsequently amended on, –
(1) 19th December, 2019 by Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2019 vide SEBI/LAD-NRO/GN/2019/44.
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