TMI BlogSecurities And Exchange Board of India (Foreign Portfolio Investors) (Third Amendment) Regulations, 2018X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Depositories Act, 1996 , the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014 , namely,- 1. These regulations may be called the Securities and Exchange Board of India (Foreign Portfolio Investors) (Third Amendment) Regulations, 2018. 2. They shall come into force on the date of their publication in the Official Gazette. 3. In the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014 , - a. in regulation 2, in sub-regulation (1) , - i. after clause (c), the following new clause shall be inserted, namely, - (ca) control includes the right to appoint majority of the directors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans, overseas citizens of India and resident Indians shall not be in control of the applicant or of the existing foreign portfolio investor: Nothing contained in sub-clause (iii) shall apply if the applicant or an existing foreign portfolio investor is an offshore fund for which No Objection Certificate has been issued by the Board in terms of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, or is controlled by an Investment Manager which is controlled and/or owned by non-resident Indian or overseas citizen of India or resident Indian if the following conditions are satisfied: I. such Investment Manager is appropriately regulated in its home jurisdiction and registered with the Board as a non-investing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith clause (ea) of sub-regulation (1) within a period of two years from the date of coming into force of this regulation or from the date of registration, whichever is later. (2) An existing foreign portfolio investor shall comply with clause (eb) of sub-regulation (1) within a period of three months from the date of coming into force of this regulation. (3) A foreign portfolio investor who remains non-compliant even after the period specified in clauses (1) and (2) of this sub-regulation shall be prohibited from making any fresh purchase of securities and such foreign portfolio investor shall liquidate its existing position in the Indian securities market within a period of one hundred and eighty days. (4) In case of temporary bre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-regulation (6), for the words for the purposes , the symbol and words , as defined in clause (a) of sub-section (1) of section 2 shall be substituted. e. in regulation 22, in sub-regulation (1), in clause (c) , for the words are resident Indians or non-resident Indians and to entities that are beneficially owned by resident Indians or non-resident Indians , the words and number do not satisfy the conditions specified in regulation 4 shall be substituted. f. in regulation 23 , - i. in sub-regulation (1), in clause (c), after the word information and before the word previously , the words and symbol including any direct or indirect change in its structure or ownership or control, shall be inserted. ii. the existing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amely, - (4) In order to appropriately monitor investment concentration where common ownership or control is identified for such public retail funds, the Indian depositories shall maintain details of controlling entities on the basis of name, address, nationality, passport number/ any other identification card issued by Government and provide appropriate reports to the Board on a periodic basis. iv. the existing sub-regulation (4) shall be renumbered as sub-regulation (5) and the words beneficial ownership shall be substituted with the words common ownership or control . g. in regulation 32, - i. in sub-regulation (1), in clause (f), Explanations 1 and 2 shall be substituted with the following Explanations, namely, - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Part A, in clause (4) , - i. the words common beneficial owners(s) shall be substituted with the words direct/indirect common ownership or control ; and ii. the words beneficial owner is shall be substituted with the words common ownership or control is of . AJAY TYAGI, Chairman [ADVT.-III/4/Exty.474/18] Footnote: 1. The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014 were published in the Gazette of India on 7th January, 2014 vide No. LAD-NRO/GN/2013- 14/36/12. 2. The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, were subsequently amended on: (a) July 8, 2016 by the Securities and Exchange Board of India (Foreign Portfol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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