DEPUTY GENERAL MANAGER
MARKET REGULATION DEPARTMENT
MAPIN/Cir – 42/2004
December 1, 2004
Foreign Institutional Investors (FIIs) and Custodians of Securities
Sub: Registration of FIIs and their Sub-Accounts under the Central Database of Market Participants (MAPIN database) – Clarifications
1. SEBI, vide notification dated September 28, 2004, has notified FIIs and their sub-accounts as ‘specified investors’ who are required to obtain a Unique Identification Number (UIN) under the SEBI (Central Database of Market Participants) Regulations, 2003 by March 31, 2005. Pursuant to the said notification, SEBI vide circular No.MAPIN/Cir-37/2004 dated October 27, 2004, specified the procedure to be followed by the ‘specified investors’ for obtaining the UIN.
2. However, subsequently the custodians on behalf of the FIIs and their sub-accounts have submitted several representations to SEBI regarding the difficulties faced by them in complying with the requirements of the registration procedure. Pursuant to the above, a series of meetings was also held with the custodians during which certain amendments/modifications to the Application Forms were suggested in order to ease out the problems faced by the FIIs and their sub-accounts during the registration procedure.
3. In view of the representations received and in order to remove the difficulties and hardships faced by the FIIs and their sub-accounts during the procedure for registration under the MAPIN database, certain modifications have been made to Form B of the application form. A copy of the revised Application Form – B to be used by FIIs and their sub-accounts to apply for a UIN is enclosed as Annexure A.
4. In addition to the above, it is clarified that:
4.1. In Part A of Form B,
4.1.1. Under the column ‘Previous Names (if any)’, the FII/sub account shall indicate any change of name subsequent to its registration with SEBI.
4.1.2. Under the fields ‘Registration Number’, ‘Registration / Formation Date’ etc the FII/Sub account shall submit the particulars of its SEBI Registration.
4.1.3. The ‘Address for communication’ of the FII / Sub-account shall be the address mentioned by the FII/Sub-Account at the time of obtaining registration from SEBI.
4.1.4. The list of documents currently accepted as ‘Proof of Address’, has been expanded to include the following documents:
a) A copy of the application form submitted to SEBI for registration as a FII / sub-account.
b) A copy of the letter sent by SEBI conveying approval of registration as a FII / sub-account to the concerned entity. The letter must bear the SEBI registration number and the mailing address of the FII / sub-account as well as the mailing address of the custodian.
c) However, in cases where the domestic custodian has been changed and the new custodian does not have access to any of the documents mentioned at (a) and/or (b) above, a copy of the letter sent by SEBI taking note of the change in custodian to the concerned FII / sub-account. The letter must bear the SEBI registration number and the mailing address of the FII / sub-account as well as the mailing address of the custodian.
4.2. In Part B of Form B, the column titled ‘Net-worth’ need not be filled in by the FII/Sub account.
4.3. In Part C of Form B,
4.3.1. The column for ‘Relationship’ will be filled in by the FIIs and their Sub-accounts in accordance with Note No. 5.
4.3.2. Where the application form is submitted by an authorized representative of the FII / sub-account, a duly notarized copy of the Power of Attorney must accompany the form.
4.4. Entities not registered with SEBI but investing through the GDR / FDI route are presently not notified as ‘specified investors’ under the captioned regulations.
4.5. The custodians may make the payment towards the registration fees through a consolidated demand draft.
5. This clarificatory circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 16A of the SEBI (Central Database of Market Participants) Regulations, 2003 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market.
V S SUNDARESAN