TMI Blog2015 (10) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... ated that the Government would not take any ‘knee-jerk’ reaction with regard to stipulating or not stipulating any norms stricter than what are already in place - Petitioner cannot validate any cause for filing the present petition – Decided against the appellant. - W.P.(CRL) 2001/2015 & CRL. M. A. 13324/2015 - - - Dated:- 17-9-2015 - MR. BADAR DURREZ AHMED AND MR. SANJEEV SACHDEVA, JJ. For The Petitioner Mr Manohar Lal Sharma, petitioner-in-person For the Respondent/UOI Mr Sanjay Jain, ASG with Mr Akshay Makhija, Mr Sidharth Thakur, Mr Vidhur Mohan, Ms Pallavi Shali, Mr Shresth Jain, Ms Sanjugeeta Mokkan and Ms Mahima Behl, Ms Sonia Mathur with Mr S. K. Bhatt JUDGMENT BADAR DURREZ AHMED, J (ORAL) 1. This writ peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Regulations and is deemed to be an intermediary in terms of the provisions of the Securities and Exchange Board of India Act, 1992. 4. Regulation 4 of the said Regulations, stipulates the eligibility criteria of a foreign portfolio investor. The said Regulation clearly indicates that the foreign portfolio investor does not function in an unregulated environment, but operates under a regulated regime. This is clearly discernible from the said Regulation, which reads as under:- 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rally 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. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scribe or otherwise deal in offshore derivatives instruments directly or indirectly: Provided further that no Category III foreign portfolio investor shall issue, subscribe to or otherwise deal in offshore derivatives instruments directly or indirectly. (2) A foreign portfolio investor shall ensure that further issue or transfer of any offshore derivative instruments issued by or on behalf of it is made only to persons who are regulated by an appropriate foreign regulatory authority. (3) Foreign portfolio investors shall fully disclose to the Board any information concerning the terms of and parties to off-shore derivative instruments such as participatory notes, equity linked notes or any other such instruments, by whatever names ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions. If there are any deviations from the Regulations, it is well within the power of the SEBI to take corrective action. In fact, Regulation 44 of the said Regulations specifies the liability for action in case of default. Regulation 44 reads as under:- Liability for action in case of default 44. A foreign portfolio investor, designated depository participant, depository or any other person who contravenes any of the provisions of these regulations shall be liable for action under the Securities and Exchange Board of India (Intermediaries) Regulations, 2008 and/or the relevant provisions of the Act or the Depositories Act, 1996. 8. From the above, it is abundantly clear that the very premise, on which the writ petition is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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