Home Acts & Rules SEBI Regulation Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014 Chapters List Chapter II REGISTRATION OF FOREIGN PORTFOLIO INVESTORS This
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Regulation 4 - Eligibility criteria of foreign portfolio investor - Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014Extract Eligibility criteria of foreign portfolio investor. 4.The designated depository participant shall not consider an application for grant of certificate of registration as a foreign portfolio investor unless the applicant satisfies the following conditions namely,- (a) the applicant is a person not resident in India; (b) the applicant is resident of a country whose securities market regulator is a signatory to International Organization of Securities Commission s Multilateral Memorandum of Understanding (Appendix A Signatories) or a signatory to bilateral Memorandum of Understanding with the Board: [Provided that an applicant falling under Category I foreign portfolio investor, as defined in clause (a) of Regulation 5, shall be considered as eligible for registration, if the applicant is a resident in a country as may be approved by the Government of India.] 1 (c) the applicant being a bank, is a resident of a country whose central bank is a member of Bank for International Settlements; (d) the applicant is not resident in a country identified in the public statement of Financial Action Task Force as: (i) a jurisdiction having a strategic Anti-Money Laundering or Combating the Financing of Terrorism deficiencies to which counter measures apply; or (ii) a jurisdiction that has not made sufficient progress in addressing the deficiencies or has not committed to an action plan developed with the Financial Action Task Force to address the deficiencies; (e) the applicant is not a non-resident Indian; (f) the applicant is legally permitted to invest in securities outside the country of its incorporation or establishment or place of business; (g) the applicant is authorized by its Memorandum of Association and Articles of Association or equivalent document(s) or the agreement to invest on its own behalf or on behalf of its clients; (h) the applicant has sufficient experience, good track record, is professionally competent, financially sound and has a generally good reputation of fairness and integrity; (i) the grant of certificate to the applicant is in the interest of the development of the securities market; (j) the applicant is a fit and proper person based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008; and (k) any other criteria specified by the Board from time to time. 2 [Provided that, in respect of a Category I or Category II foreign portfolio investor, as defined in clause (a) or clause (b) of Regulation 5, clauses (f), (g) (h)and (i) of this regulation shall not be applicable.] Explanation.-For the purposes of this regulation: (i) The term person shall have the same meaning as assigned to it under section 2 (31) of the Income-tax Act, 1961; (ii) The term non-resident shall have the same meaning as assigned to it under the Income-tax Act, 1961; (iii) The term resident in India shall have the same meaning as assigned to it under the Income-tax Act, 1961; (iv) Bilateral Memorandum of Understanding with the Board shall mean a bilateral Memorandum of Understanding between the Board and the overseas regulator that, inter alia, provides for information sharing arrangements under clause (ib) of sub section (2) of Section 11 of the Act. ********** 1 Inserted by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2018, w.e.f. 05-04-2018. 2 Inserted by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2018, w.e.f. 05-04-2018.
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