Foreign Portfolio Investors ("FPIs")

master_circulars · 1992 · State unknown

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Parent: THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 (7c4c1f5343adab106c3a94cafc08a5ecf5957ae7)

Text

To, Foreign Portfolio Investors ("FPIs") Designated Depository Participants ("DDPs") and Custodians The Depositories All recognized Stock Exchanges and Clearing Corporations including those in International Financial Services Centre Dear Sir / Madam, Subject: Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors. Securities and Exchange Board of India (SEBI), vide circular number SEBI/HO/AFD2/CIR/P/2022/175 dated December 19, 2022, had issued Master Circular for FPIs, DDPs and Eligible Foreign Investors under the Securities and Exchange Board of India (Foreign Portfolio Investors), Regulations 2019. Subsequently, various circulars has been issued pertaining to FPIs and DDPs . The provisions of the aforesaid circulars are incorporated in this Master Circular which supersedes the earlier Master Circular dated December 19,2022 This Master Circular shall come into force from the date of its issue. The circulars mentioned in Annexure A of the Master Circular shall stand rescinded with the issuance of this Master Circular. With respect to the directions or other guidance issued by SEBI, as specifically applicable to FPIs, shall continue to remain in force in addition to the provisions of any other law for the time being in force. Terms not defined in this Master Circular shall have the same meaning as provided under the Regulations . Notwithstanding such rescission, anything done or any action taken or purported to have been done or taken including registration or approval granted, fees collected, registration or approval, suspended or cancelled, any adjudication, enquiry or investigation commenced or show -cause notice issued under the rescinded circulars, prior to such rescission, MASTER CIRCULAR SEBI/HO/AFD/AFD -

Rule TOC

1 · Guidance for Processing of FPI applications by DDPs

2 · Guidance for certain specific entities

3 · Multiple Investment Managers (MIM)

4 · Continuance of Registration

5 · Certificate of Registration

6 · Rejection of FPI application

7 · Obligations of DDPs

8 · Reporting

9 · Name change

10 · Surrender of Registration

11 · Change in Custodian/DDP

12 · Requirement for segregated portfolios

13 · Reclassification

14 · Change in Material Information

15 · Change in Status of a Compliant Jurisdiction

16 · Other Changes relating to FPI

1 · KYC documentation requirements for FPI

1 · Power of Attorney having address provided to Custodian is accepted as address proof.

2 · Power of Attorney granted to Global custodian/ local custodian is accepted in lieu of Board Resolution (BR). BR and the authorized signatory list (ASL) is not required if SWIFT is used as a medium of instruction.

3 · UBO is not required for Government and Government related entities.

2 · Sharing of KYC documents with banks towards opening of bank accounts of FPIs

3 · Depository Account by Foreign Portfolio Investor:

4 · Identification and verification of Beneficial Owners

5 · Periodic KYC review

6 · Data security

7 · Period for maintenance of records

8 · Guidelines for KYC:

9 · List of supporting documents:

1 · Monitoring of investment limit at investor group level

2 · Monitoring of Investment Limit at individual level

3 · Off -Market transfer of securities

4 · " To be listed" shares

5 · Short sale of securities

6 · Investment by FPI through primary market issuances

7 · Transfer of Right entitlements

8 · Risk management framework for FPIs

9 · FPIs investments in debt securities

10 · Allocation of corporate debt limit

11 · Position limits available to FPIs for stock and stock index derivative contracts

12 · FPI Position Limits in Exchange Traded Interest Rate Futures (IRF)

13 · Participation of FPIs in the Currency Derivatives segment and Position limits for currency derivatives contracts

14 · Participation of FPIs in Exchange Traded Commodity Derivatives (ETCDs) in India

15 · Investments by FPIs in REITs, InvITs, AIFs

16 · Investments by FPIs in corporate bonds under default

17 · Clarification regarding adherence to below 10% investment limit

18 · Write -off of securities held by FPIs

1 · Conditions for issuance of ODIs

2 · Know Your Client (KYC) norms for ODI subscribers and reporting of suspicious transactions

3 · Reporting of ODIs and Maintenance of Control Systems