THE GAZETTE OF INDIA
PART – III – SECTION 4
PUBLISHED BY AUTHORITY
NEW DELHI, JANUARY 7, 2014
SECURITIES AND EXCHANGE BOARD OF INDIA
Mumbai, the 7th January, 2014
SECURITIES AND EXCHANGE BOARD OF INDIA
(FOREIGN PORTFOLIO INVESTORS) REGULATIONS, 2014
No. LAD-NRO/GN/2013-14/36/12.- 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 put in place a framework for registration and procedures with regard to foreign investors who propose to make portfolio investment in India, namely,—
1. Short title and commencement.
(1) These regulations may be called the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014.
(2) They shall come into force on the date of their publication in the Official Gazette.
(1) In these regulations, unless the context otherwise requires, the terms defined herein shall bear the meanings assigned to them below, and their cognate expressions and variations shall be construed accordingly,—
(a)“Act” means the Securities and Exchange Board of India Act, 1992;
(b) “Board” means the Securities and Exchange Board of India established under section 3 of the Act;
(c)”certificate” means a certificate of registration granted to a foreign portfolio investor by the designated depository participant on behalf of the Board under these regulations;
(d)“custodian of securities” means a person registered under the Securities and Exchange Board of India (Custodian of Securities) Regulations, 1996;
(e) “designated bank” means a scheduled bank in India, which has been authorized by the Reserve Bank of India to act as a banker to foreign portfolio investors;
(f) “designated depository participant” means a person who has been approved by the Board under Chapter III of these regulations;
(g)”foreign institutional investor” means an institution who is registered under the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995;
(h)“foreign portfolio investor” means a person who satisfies the eligibility criteria prescribed under regulation 4 and has been registered under Chapter II of these regulations, which shall be deemed to be an intermediary in terms of the provisions of the Act:
Provided that any foreign institutional investor or qualified foreign investor who holds a valid certificate of registration shall be deemed to be a foreign portfolio investor till the expiry of the block of three years for which fees have been paid as per the Securities and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995;
(i) “Form” means a form specified in the First Schedule to these regulations
(j) “offshore derivative instrument” means any instrument, by whatever name called, which is issued overseas by a foreign portfolio investor against securities held by it that are listed or proposed to be listed on any recognised stock exchange in India, as its underlying;
(k) “qualified depository participant” means a depository participant approved by the Board to act as qualified depository participant;
(l) “qualified foreign investor” means a person who has opened a dematerialized account with a qualified depository participant as a qualified foreign investor;
(m)”Schedule” means a schedule to these regulations;
(n) “sub-account” means a person who is registered under the Securities and Exchange Board of India (Foreign Institutional Investor) Regulations, 1995.
(2) Words and expressions used and not defined in these regulations, but defined in the Act or the Companies Act, 2013, the Securities Contracts (Regulation) Act, 1956, the Depositories Act, 1996 or the rules and regulations made thereunder shall have the same meaning respectively assigned to them in those Acts or rules or regulations or any statutory modification or re-enactment thereto.