Circular No. FITTC/CUST/09/2000
September 21, 2000
All Custodians of Securities
Sub: Renewal of registration of Foreign Institutional Investors and Sub Accounts.
As per Regulation 9 of SEBI (Foreign Institutional Investors) Regulations, 1995, the Foreign Institutional Investors (FIIs) desirous of renewal of registration have to make an application for renewal in Form A, three months before the expiry of the period of certificate of registration.
The procedure for renewal of registration is similar to that of grant of initial registration. However, with a view to streamlining the registration process, one additional data form has been designed which is enclosed as Annexure-I. The following documents would now be required to be submitted at the time of application for renewal:
A. Renewal of registration of FII:
1. Application for renewal in Form A ( format enclosed )
2. Additional information as per Annexure I
3. Audited annual report and accounts for the last 1 year.
4. Documents to support valid registration or regulation by a Securities regulatory authority and / or Self-Regulatory Organization, or any other appropriate regulatory authority.
5. Photocopy of the current registration certificate
B. Renewal of registration of sub account:
1. Application form and undertaking
Since the registration of sub account is co-terminus with that of the FII under which it is registered, the sub account registration should also be renewed simultaneously.
The current registration certificate need not be submitted to SEBI. On renewal, a fresh registration certificate commencing from the date next to expiry date would be issued to the Foreign Institutional Investors. In case of delay in submission of the renewal application, it may not be possible to process the same within the registration tenure. In such cases where a renewal could not be granted within the current registration period, the registration would be suspended and the FII would not be able to conduct any investment activities. Similarly, in case of non submission of application, it shall be presumed that the FII is not interested in renewal of registration. In this situation also, the registration would be deemed to be automatically cancelled and no further investment activities would be permitted. It may also be noted that the permission under Foreign Exchange Regulation Act would also lapse on expiry of SEBI registration and could result in problems in repatriation of money. FIIs are advised to note the above and take appropriate steps to ensure timely submission of applications to SEBI.
The procedure for renewal of FIIs and sub account registration along with the renewal forms is also available at our web page ‘Foreign Institutional Investors’ on our web site www.sebi.gov.in.
The Custodians are requested to bring the contents of this circular to the notice of their
FII clients. Yours faithfully
P. GUPTA DIVISION CHIEF
Encl.: 1. Application Form (Form A)
3Sub Account Application Form