9911796707
TMI BlogMaster Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors.X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued 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. 3. Notwithstanding such rescission, a. 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suspended or cancelled, any adjudication, enquiry or investigation commenced or show-cause notice issued under the rescinded circulars, prior to such rescission, shall be deemed to have been done or taken under the corresponding provisions of this Master Circular; b. any application made to the Board under the rescinded circulars, prior to such rescission, and pending before it shall be deemed to have been made under the corresponding provisions of this Master Circular; c. the previous operation of the rescinded circulars or anything duly done or suffered thereunder, any right, privilege, obligation or liability acquired, accrued or incurred under the rescinded circulars, any penalty, incurred in respect of any violati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... untries Source for verification from website of (a) List of countries where the securities market regulator is a signatory to IOSCO MMOU shall be verified by the DDP. International Organization of Securities Commissions (IOSCO) (b) List of countries that have bilateral MOU with SEBI Securities and Exchange Board of India (SEBI) (c) The list of countries whose Central Bank is a member of the BIS Bank for International Settlements (BIS) (d) List of countries that are listed in the public statements issued by FATF and list of FATF member country Financial Action Task Force (FATF). With respect to the eligibility of FPI applicants from a country where there are separate securities market regulators for different provinces/ states within that country, applicants from only those provinces / states whose securities market regulator is a signatory to IOSCO MMOUs or has entered into a Bilateral MoU with SEBI would be eligible for grant of registration as FPI. Any reference in the Regulations and in this Master Circular, with regards to an entity 'from a FATF member country' will mean that the entity has its primary place of business in a FATF member country and, if regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gibility conditions within ninety days of its breach. In case the foreign portfolio investor remains non-compliant with the said requirement even after ninety days, then no fresh purchases shall be permitted and such FPI shall liquidate its existing position in Indian securities market within a period of the next one hundred and eighty days. iii. Fit and proper person check - DDP may obtain declaration from the applicants about their meeting eligibility criteria specified under Regulation 4 of the Regulations and shall exercise its due diligence, as applicable. iv. Category I FPI check - DDP may verify the eligibility of Category I FPI (under Regulation 5(a)(i) based on relevant details under which the entity has been established - e.g. Government Charter, Act, Legislation, the shareholding pattern provided by the FPI applicant. v. Regulatory check - The DDP may verify if the applicant is regulated or supervised by the securities market regulator or banking regulator and that its registration/license granted by its regulator has not been cancelled and is still valid through any one of the following: a) Obtain a copy of certificate issued by such regulator or; b) verify th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the same capacity in which they propose to make investments in India. iii. Pension funds Pension funds shall include superannuation or similar schemes that provides retirement benefits to employees/ contributors. iv. Appropriately regulated entities investing on behalf of clients Appropriately regulated entities such as banks and merchant banks, asset management companies, investment managers, investment advisors, portfolio managers, insurance & reinsurance entities, broker dealers and swap dealers will be permitted to undertake investments on behalf of their clients as Category II FPIs in addition to undertaking proprietary investment by taking separate registrations as Category I FPI. Where such entities are undertaking investments on behalf of their clients, Category II FPI registration shall be granted subject to following conditions: i. Clients of FPI can only be individuals and family offices. ii. Clients of FPI should also be eligible for registration as FPI and should not be dealing on behalf of third party. iii. If the FPI is from a FATF member country, then the KYC including identification & verification of beneficial owner of the clients of such FPI sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor or existing custodian/DDP shall provide certified true copy of the application form to new custodian/DDP. 4. Continuance of Registration i. FPIs who wish to continue with their registration for the subsequent block of three years, should pay the fees to their DDPs and inform change in information, if any, as submitted earlier. ii. In case of no change in information, FPIs shall give declaration that there is no change in the information, as previously furnished. iii. FPI shall provide the additional information, if applicable, along with supporting documents including fees for continuance of its registration at least 15 days prior to current validity of its registration in order to facilitate a smooth continuance process. FPI is required to submit a reason for delay, if any, in delayed submission of such information/fees. iv. If DDP is in receipt of registration fees prior to validity date but the due-diligence including KYC review is not complete by the validity date due to non-submission of information by the FPI, no further purchases may be permitted till the intimation of continuance is given by DDP. v. Where the FPI has not paid fees for continuance of its regis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th of the following month. ii. Depository/DDP shall submit to SEBI monthly reports of the fees collected for all the FPIs registered by it as per the format set out in Annexure D hereto and such other reports as may be required by SEBI. 9. Name change i. In case the FPI has undergone a change in name, the request for updation/ incorporation of new name should be submitted by the FPI to the DDP accompanied by documents certifying the name change. Such name change can be evidenced by: * Information available on the website of the home regulator; or * Certified copy of document(s) from home regulator; or * Certified copy of document(s) from Registrar of Company (or equivalent authority) (wherever applicable) issued; or * Where above is not applicable, a Board Resolution or equivalent authorizing the name change ii. An undertaking by the FPI shall be given stating that it is a mere name change and does not involve change in beneficial ownership, category or structure. Where FPIs has delayed in submitting details of name change beyond 6 months, DDP shall provide details of all such instances with reasons. iii. Upon receipt of the request for name change along with above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the change. In case, the request for change in local custodian/DDP is received from Global Custodian, the transferee local custodian/DDP shall inform Compliance Officer of the concerned FPI(s) regarding the change in their local custodian/DDP. iii. Once the change of DDP/Custodian is approved by DDP, the FPI will need to transfer accounts and assets to the new DDP/Custodian within a period of 30 days. In case the transition does not take place within the stipulated time, the FPI shall provide reasons for the same and seek extension from DDP for a further period of 30 days. Once the transition is complete, transferee local custodian/DDP shall intimate SEBI about the change. Both the DDPs will provide joint confirmation on completion of transition of data and documents to SEBI. iv. With respect to the process of change of local custodian/DDP by an FPI, the new DDP (i.e. transferee) may rely on the due diligence carried out by the old DDP. However, the new DDP is required to carry out adequate due diligence at the time when the FPI applies for continuance of its registration. 12. Requirement for segregated portfolios i. Funds investing in India include those with sub-funds or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Board or relating to any direct or indirect change in its structure or ownership or control, change in regulatory status, merger, demerger or restructuring, change in category/ sub-category / structure/ jurisdiction/ name of FPI/ beneficial ownership etc, of the FPI, it shall forthwith inform the DDP and/or the Board in writing. ii. The DDP shall examine all such material changes and re-assess the eligibility of the FPI including requiring FPIs to seek fresh registration. However, DDP shall not process any request for change in jurisdiction of the FPI and in such cases, FPI may apply for new FPI registration. iii. Where there is a delay of more than six months in intimation of material change by the FPI to the DDP, the DDP shall, forthwith, inform all such cases to SEBI for appropriate action, if any, along with reason for delay. 15. Change in Status of a Compliant Jurisdiction i. If a jurisdiction, which was a compliant jurisdiction at the time of grant of registration to FPI, becomes non-compliant jurisdiction i.e. ceases to be member of IOSCO/ Bilateral Memorandum of Understanding with SEBI/ BIS or the concerned jurisdiction of FPI is listed in FATF public statement as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orney 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.] Required Required 8 Ultimate Beneficial Owner (UBO) List of UBO including the details of Intermediate BO [UBO is not required for Government and Government related entities.] Required Required 9 Proof of Identity Not Required Required Notes to the Table: i. FPIs to provide an undertaking that upon demand by Regulators/ Law Enforcement Agencies the exempted / relevant document/s would be submitted to the intermediary. ii. For FPI Category - I coming from high-risk jurisdiction (other than those registered under Regulation 5(a)(i), the KYC documentation equivalent to FPI Category II shall apply. iii. FPI Category - II registered under Regulation 5(b)(i), shall provide KYC documentation equivalent to FPI Category - I. However, BO details need to be provided in specified format. iv. For non-PAN related KYC documents (including KYC form), a local custodian can rely on KYC carried out by another entity of the same financial group (like a Global Custodian or Investment M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ediaries may be transferred to the concerned bank through their authorised representative. iii. While transferring such documents, intermediaries shall certify that the documents have been duly verified with the original or notarised documents have been obtained, where applicable. In this regard, a proper record of transfer of documents, both at the level of the Intermediaries as well as at the bank, under signatures of the officials of the transferor and transferee entities, may be kept. 3. Depository Account by Foreign Portfolio Investor: In case, a FPI holds separate depository accounts in both NSDL and CDSL, it is allowed to appoint only one custodian. 4. Identification and verification of Beneficial Owners i. Beneficial Owners (BOs) are the natural persons who ultimately own or control an FPI and should be identified in accordance with Rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (hereinafter referred as PMLA Rules). FPIs are required to maintain a list of BOs and should provide such list of their BOs as below:- Table 5 Sl. No. Name & Address of the Beneficial Owner (Natural Person) Date of Birth Tax Residency Jurisdiction Nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voting rights, agreements, arrangement etc., that should also be specified. It is clarified that BO should not be a nominee of another person and real BO should be identified. 5. Periodic KYC review KYC review means steps taken to ensure that documents, data or information collected under the due-diligence process are kept up-to-date and relevant by undertaking reviews of existing records on a periodical basis. i. At the time of KYC review, custodian may seek confirmation from FPI whether there is any change in the documents/ information provided earlier. If there is any change, the FPI shall provide the updated documents/ information to the custodian. Table 6 Jurisdiction FPI Category - I FPI Category - II High Risk Registered under Regulation 5(a)(i) - During continuance of registration i.e. every 3 years. Others - Annually Annually Non-High Risk During continuance of registration i.e. every 3 years. Regulated entities during continuance of registration i.e. every 3 years. Others- Annually. 6. Data security The KYC Registration Agencies (KRAs) shall secure personal information provided with regard to beneficial owner including SMO of FPI. Such information should b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for KYC: i. Copies of all the documents submitted by the applicant should be accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents. Additional requirement of self-certification of documents is no longer required. ii. If any proof of identity or address is in a foreign language, then translation into English is required. iii. Name & address of the applicant mentioned on Form, should match with the documentary proof submitted. iv. If more than one address is provided, proof should be enclosed. v. The Global Custodian or the Local Custodian may fill the Form, if authorized through the Power of Attorney (PoA). vi. In person verification is not applicable for a non-individual Client. IPV for individual clients through web camera shall be allowed. vii. Reliance on information available from reliable public sources- In addition to information provided by the client, the intermediaries can rely on documents / information available from reliable public sources (for e.g. websites of Regulators, Exchanges, SROs, Registrars) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d his/her relatives who is/are also registered as FPI(s) should also be considered for the purposes of investor group. The term "relative" shall mean a relative as per sub section (77) of section 2 of the Companies Act, 2013. ii. Where different FPIs belonging to the same investor group are serviced by different custodians, the custodians shall report the holdings of such FPIs to both the depositories. The depositories shall club the investments of such FPIs and ensure that combined holdings of all these FPIs remains below 10% of the total paid up equity capital in a listed or to be listed company on a fully diluted basis at any time. iii. The depositories shall monitor the aggregate investment limits of FPI group based on demat holdings data, daily on an end of day basis. iv. The depositories shall put in place appropriate systems, procedures and mechanisms to capture and maintain the details of FPIs belonging to the same investor group, based on the information provided by the DDPs, from time to time. v. The depositories shall put in place appropriate systems, procedures and mechanisms to monitor the investment limit/ holdings of FPIs belonging to the same investor group. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of monitoring the foreign investment limit. E. The stock exchanges (BSE, NSE and MSEI) shall provide the data on the paid-up equity capital of an Indian company to its Designated Depository. This data shall include the paid-up equity capital of the company on a fully diluted basis. F. The depositories shall provide an interface wherein the company shall provide the following information to its Designated Depository: i. Company Identification Number (CIN) ii. Name iii. Date of incorporation iv. PAN number v. Applicable Sector vi. Applicable Sectoral Cap vii. Permissible Aggregate Limit for investment by FPIs viii. Permissible Aggregate Limit for investment by NRIs ix. Details of shares held by FPI, NRIs and other foreign investors, on repatriable basis, in demat as well as in physical form x. Details of indirect foreign investment which are held in both demat and physical form xi. Details of demat accounts of Indian companies making indirect foreign investment in the capital of the company xii. Whether the Indian company that has foreign investment in it is either owned and controlled by resident Indian Citizens or is owned or controlled by person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt headroom shall be updated on a daily end-of-day basis as long as the red flag is activated. Aggregate FPI investment limit of the company e. The system shall calculate the percentage of FPI holding in the company and the investment headroom available as at the end of the day with respect to the aggregate FPI investment limit f. If the available headroom is 3% or less than 3% of the aggregate FPI investment limit, a red flag shall be activated for that company. g. Thereafter, the depositories and exchanges shall display the available investment headroom, in terms of available shares, for all companies for which the red flag has been activated, on their respective websites. h. The data on the available investment headroom shall be updated on a daily end-of-day basis as long as the red flag is activated. Sectoral cap of the company i. The system shall calculate the total foreign investment in the company by adding the aggregate NRI investment, the aggregate FPI investment and other foreign investment in the company as provided by the company in the company master. j. If the total foreign investment in a company is within 3% or less than 3% of the sectoral cap, then a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total quantity purchased by foreign investors on T day 1000 Breach quantity 400 Time Foreign Investor Purchased quantity Cumulative Purchase by foreign investor Quantity to be disinvested by the foreign investor 1000 hrs ABC 100 100 40 1015 hrs XYZ 250 350 100 1145 hrs TYU 50 400 20 1230 hrs POI 180 580 72 1300 hrs QSX 120 700 48 1400 hrs REW 150 850 60 1410 hrs LOP 150 1000 60 Total 1000 400 Q. As can be observed from the above table, the foreign investors/FPIs/NRIs which are required to disinvest shall be identified and shall be informed of the excess quantity that they are required to disinvest. R. In the case of FPIs which have been identified for disinvestment of excess holding, the depositories shall issue the necessary instructions to the custodians of these FPIs for disinvestment of the excess holding within 5 trading days of the date of settlement of the trades. S. In the case of NRIs which have been identified for disinvestment of excess holding, the depositories shall issue the necessary instructions to the Authorized Dealer (AD) Banks for disinvestment of the excess holding within 5 trading days of the date of settlement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... do so within the disinvestment time period, irrespective of the fresh availability of an investment headroom during the disinvestment time period. X. There shall be no annulment of the trades which have been executed on the trading platform of the stock exchanges and which are in breach of the sectoral caps/aggregate FPI limits/aggregate NRI limits. Failure to disinvest within 5 trading days Y. If a breach of the investment limits has taken place on account of the FPIs and the identified FPIs have failed to disinvest within 5 trading days, then the matter shall be referred to SEBI. 3. Off-Market transfer of securities i. In addition to the transactions set out under Regulation 20(4)(d) of the Regulations with domestic or foreign investors, FPIs shall also be permitted to request for 'Off Market' transfer of assets between FPIs operating under MIM structure (with same PAN issued by Income Tax Department) to their DDPs and such requests can be processed by DDPs at their end. In case of relocation of FPIs to IFSC, FPIs ('original fund' or its wholly owned special purpose vehicle) may approach its DDP for approval of a one-time 'off-market' transfer of its securities to the 'r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s undertaken by FPIs in the Cash Market a) The trades of FPIs shall be margined on a T+1 basis as specified by SEBI. b) However, the trades of Category II FPIs who are corporate bodies, Individuals or Family offices shall be margined on an upfront basis as per the extant margining framework for the non-institutional trades. ii. Facility for allocation of trades among related FPIs: The following framework may be implemented to facilitate allocation of trades among the FPIs: a) Entities who trade on behalf of FPIs shall inform the stock brokers of the details of FPIs on whose behalf the trades would be undertaken. b) The stock broker, in turn, shall inform the stock exchanges the details of such related FPIs. c) Stock exchanges shall put-in place suitable mechanism to ensure that allocation of trade is permitted only among such related FPIs. 9. FPIs investments in debt securities i. With respect to FPIs investments into government (Central and State) securities, exchange traded currency and interest rate derivatives, FPIs shall be guided by directions issued by RBI from time to time. ii. In respect of investment conditions in the corporate debt securities, the FPI sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty Pricing of bid Minimum flat fees of INR 1000 or bid price whichever is higher Time period for utilization of the limits 10 trading days from the date of allocation e. Once the limits have been auctioned, the FPIs will have a utilisation period of 10 trading days within which they have to make the investments. The limits not utilised within this period shall come back to the pool of free limits. f. Upon sale/redemption of debt securities, the FPI will have a re-investment period of 2 trading days. If the re-investment is not made within 2 trading days, then the limits shall come back to the pool of free limits. g. A single FPI/ FPI investor group cannot bid for more than 10% of the limits being auctioned. iii. The subsequent auction would be held 12 trading days after the previous auction, subject to the fulfilment of the condition mentioned at clause (ii)(c) above. iv. The auction mechanism shall be discontinued and the limits shall be once again available for investment on tap when the debt limit utilisation falls below 92%. It is clarified that in such a scenario, the reinvestment facility mentioned at clause (ii)(f) above shall be terminated and cannot be availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sition in excess of INR 1,800 crore at any point of time. c) The limits prescribed for investment by FPIs in Government Securities shall be exclusively available for investment in Government Securities and shall not be reckoned for the purpose of computing utilisation under above mentioned limit of INR 5,000 crore. d) The Position Limits for FPI across all contracts will be as below: i. Category I and II FPIs (other than individuals, family offices and corporates) - Trading member level Position limits ii. Category II FPIs (Individuals, family offices and corporates - Client level position limits will apply. Category 8-11 years maturity bucket 4-8 and 11-15 year maturity bucket Trading Member Level 10% of Open Interest or INR 12 billion whichever is higher 10% of Open Interest or INR 6 billion, whichever is higher Client Level 3% of Open Interest or INR 4 billion, whichever is higher 3% of Open Interest or INR 2 billion, whichever is higher iii. The total gross short (sold) position of an FPI in IRF shall not exceed its long position in the government securities and in Interest Rate Futures, at any point in time. iv. Monitoring mechanism a) Stock Exchanges sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igher. EUR-INR Gross open position across all contracts shall not exceed 6% of the total open interest or EUR 10 million, whichever is higher. GBP-INR Gross open position across all contracts shall not exceed 6% of the total open interest or GBP 10 million, whichever is higher. JPY-INR Gross open position across all contracts shall not exceed 6% of the total open interest or JPY 400 million, whichever is higher. iii. In case of positions taken to hedge underlying exposure, the position limit linked to open interest shall be applicable at the time of opening a position. Such positions shall not be required to be unwound in the event a drop of total open interest in a currency pair at a stock exchange. However, participants shall not be allowed to increase their existing positions or create new positions in the currency pair till they comply with the position limits. iv. Limits for FPIs and Domestic Clients based on Underlying Exposure: * FPIs may take long or short positions without having to establish existence of underlying exposure, upto a single limit of USD 100 million equivalent, across all currency pairs involving INR, put together, and combined across all the stock ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay's highest open positions at end of day to the custodians of the FPI. * The custodian of the FPI shall aggregate the positions taken by the FPI on the currency derivatives segments of all the stock exchanges and forward such details to the designated bank of the FPI. The custodian of the FPI shall also provide the market value of applicable underlying exposure of the FPI to the designated bank of the FPI. vii. The onus of complying with the above provisions shall rest with the FPI and in case of any contravention, the FPI shall render itself liable to any action that may be warranted by RBI as per the provisions of Foreign Exchange Management Act, 1999 and Regulations, Directions, etc. framed thereunder. These limits shall be monitored by stock exchanges and/or clearing corporations and breaches, if any, shall be reported to RBI. In this regard, stock exchanges / clearing corporations shall devise a suitable mechanism to monitor the aforesaid limits, subject to appropriate regulatory concurrence 14. Participation of FPIs in Exchange Traded Commodity Derivatives (ETCDs) in India FPIs are permitted to trade in Indian ETCDs, subject to the conditions mentioned below: i. FPIs a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of such NCDs/bonds under default, from whom they propose to acquire. iv. All investments by FPIs in such bonds shall be reckoned against the prevalent corporate debt limit. All other terms and conditions pertaining to FPI investments in corporate debt securities shall continue to apply. 17. Clarification regarding adherence to below 10% investment limit In the event an FPI and its investor group reach 10% or more of the total paid up equity capital of a company on a fully diluted basis, they must follow extant FEMA rules in this regard. If such FPI and its investor group opt to treat their entire investment into a company as FDI under Regulation 22(3), such FPI including its investor group shall not make further portfolio investment in that company under the Regulations. Such FPI/ its investor group shall inform respective custodians of the choice who in turn will report this to the board, depositories and the issuer. Such investments shall be treated as FDI subject to norms as prescribed by RBI from time to time and will be marked as FDI in custodian records. However, FPI and its investor group will be able to sell these securities only through the route as they were acqui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e following is permitted through a separate FPI registration of an ODI issuing FPI under Category I: (a) Derivative positions that are taken on stock exchanges by the FPI for 'hedging of equity shares' held by it in India, on a one to one basis; and/or The term "hedging of equity shares" means taking a one-to-one position in only those derivatives, which have the same underlying as the equity share held by the FPI in India. (b) An ODI issuing FPI may hedge the ODIs referencing equity shares with derivative positions in Indian stock exchanges, subject to a position limit of 5% of market wide position limits for single stock derivatives. The permissible position limit for stock index derivatives is higher of INR 100 crores or 5% open interest; and/or For avoidance of any doubt on ODIs reference/ underlying and their allowance or otherwise, as stated under (i) and (ii) above, the following table shall be referred: Table 10 Sl. No. ODI reference/ underlying ODI issuer's holding in India against the ODI Allowed Exception 1 Cash equity/ debt securities / any permissible investment by FPI (other than derivatives) Cash equity/ debt securities / any permissible investment b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the index would not be regarded as ODIs, even if such exposure is hedged onshore in India. However, trades with custom baskets as underlying if hedged onshore would always be regarded as ODIs regardless of percentage of Indian component that is hedged onshore in India. v. Synthetic short activities, where ODI are issued which has the effect of short sale in the Indian securities, continue to be prohibited for FPIs. vi. ODI issuer shall ensure that it has collected documents/ information enough to satisfy itself with regard to the relationship between the ODI subscriber and its Investment Manager from a FATF member country as allowed in explanation under Regulations 21 (1) (b) of the Regulations. vii. Investment restrictions specified under the Regulation 20(7) of SEBI (Foreign Portfolio Investor) Regulations, 2019 shall apply to ODI subscribers also. a) For this purpose, two or more ODI subscribers having common ownership, directly or indirectly, of more than fifty percent or common control shall be considered together as a single ODI subscriber, in the same manner as is being done in the case of FPIs. b) Further, where an investor has investments as FPI and also holds p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts on ODIs all the intermediate transfers during the month would also be required to be reported. ii. Reconfirmation of ODI positions - ODI Issuers shall be required to carry out reconfirmation of the ODI positions on a semiannual basis. In case of any divergence from reported monthly data, the same should be informed to SEBI in format provided iii. Periodic Operational Evaluation - ODI Issuers shall be required to put in place necessary systems and carry out a periodical review and evaluation of its controls, systems and procedures with respect to the ODIs. A certificate in this regard should be submitted on an annual basis to SEBI by the Chief Executive Officer or equivalent of the ODI Issuer. The said certificate should be filed within one month from the close of every calendar year. iv. Report Details - Following reports need to be submitted by the 10th of every month for the previous month in the format specified by SEBI as per the reporting format at Annexure F with effect from 1st January 2020 i.e. for the month of December 2019 the report to be filed by 10th January 2020 needs to be in the reporting format as annexed. Table 12 S. No. Heading 1. Monthly Summary R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in India b) the investor is not resident in a country identified in the public statement of FATF 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 FATF to address the deficiencies; c) the investor is not prohibited from dealing in securities market in India. ii. KYC norms: Intermediary operating in IFSC needs to ensure that records of their clients are maintained as per Prevention of Money-laundering Act, 2002 and rules made thereunder. The following KYC norms may be made applicable to EFIs: a) In case of participation of an EFI, not registered with SEBI as an FPI, but desirous of operating in IFSC, a trading member of the recognized stock exchange in IFSC, may carry out the due diligence on its own or it may rely upon the due diligence carried out by a bank, which is permitted by RBI to operate in IFSC, during the account opening process of EFI. b) In case of EFIs that are not registered with SEBI as FPI and also not hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2022/57 Modification in the Operational Guidelines for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors-SEBI to generate FPI registration number and both the Depositories to host the CAF. 4 08-Nov-21 SEBI/ HO/ FPI&C/ P/ CIR/ 2021/ 656 Write-off of debt securities held by FPIs who intend to surrender their registration 5 04-Aug-21 SEBI/ HO/ FPI&C/ P/ CIR/ 2021/ 609 Modification in Operational Guidelines for FPIs and DDPs pursuant to amendment in SEBI (Foreign Portfolio Investors) Regulations, 2019 6 01-Jun-21 SEBI/HO/FPI&C/P/CIR/2021/0569 'Off-market' transfer of securities by FPI 7 30-Mar-21 SEBI/HO/IMD/FPI&C/CIR/P/2021/045 Guidelines pertaining to Surrender of FPI Registration 8 21-Sep-20 SEBI/HO/IMD/FPI&C/CIR/P/2020/177 Write-off of shares held by FPIs 9 04-Feb-20 IMD/FPI&C/CIR/P/2020/022 Common Application Form for Foreign Portfolio Investors 10 16-Jan-20 IMD/FPI&C/CIR/P/2020/07 Exemption from clubbing of investment limit for foreign Government agencies and its related entities 11 05-Nov-19 IMD/FPI&C/CIR/P/2019/124 Operational Guidelines for FPIs & DDPs under SEBI (Foreign Portfolio Investors), Regul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Common Reporting Standards (CRS) 29 13-Mar-18 CIR/IMD/FPIC/47/2018 Clarifications in respect of investment by certain Category II FPIs 30 08-Mar-18 IMD/FPIC/CIR/P/2018/46 Separate limit of Interest Rate Futures (IRFs) for Foreign Portfolio Investors (FPIs) 31 15-Feb-18 CIR/IMD/FPIC/ 26 /2018 Easing of Access Norms for investment by FPIs 32 20-Dec-17 IMD/FPIC/CIR/P/2017/129 Investments by FPIs in Government securities 33 15-Nov-17 IMD/FPIC/CIR/P/2017/121 Investments by FPIs in Hybrid Securities 34 04-Oct-17 IMD/FPIC/CIR/P/2017/113 Investments by FPIs in Government securities 35 29-Sep-17 SEBI/HO/IMD/FPIC/CIR/P/2017/112 Foreign Portfolio Investment in Corporate debt securities 36 26-Sep-17 SEBI/HO/CDMRD/DMP/CIR/P/2017/106 Participation of Foreign Portfolio Investors (FPIs)in Commodity Derivatives in IFSC 37 20-Jul-17 IMD/FPIC/CIR/P/2017/81 Investments by FPIs in Corporate Debt 38 11-Jul-17 SEBI/HO/CIR/P/2017/79 Guidelines for participation/functioning of Eligible Foreign Investors (EFIs) and FPIs in IFSC - Amendment 39 07-Jul-17 CIR/IMD/FPI&C/76/2017 Guidelines for issuance of ODIs, with derivative as underlying, by the ODI issuing FPIs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issuance of Offshore Derivative Instruments under SEBI (Foreign Portfolio Investor) Regulations, 2014 59 09-Oct-14 CIR/IMD/FIIC/19/2014 Clarification on Government Debt Investment Limits 60 23-Jul-14 CIR/IMD/FIIC/17/2014 Change in Government Debt Investment Limits 61 16-Jun-14 CIR/IMD/FIIC/11/2014 KYC for FPIs 62 28-Apr-14 CIR/IMD/FIIC/ 09/ 2014 Infrastructure facilities and submission of periodic reports 63 07-Apr-14 CIR/IMD/FIIC/8/2014 Change in investment conditions / restrictions for FII/QFI investments in government debt securities 64 14-Feb-14 CIR/IMD/FIIC/4/2014 FII/QFI investments in Commercial papers 65 29-Jan-14 CIR/IMD/FIIC/3/2014 Change in Government Debt Investment Limits 66 20-Jan-14 CIR/MRD/DRMNP/2/2014 FII Position Limits in Exchange Traded Interest Rate Futures (IRF) 67 08-Jan-14 CIR/IMD/FIIC/02/2014 Operational Guidelines for Designated Depository Participants 68 19-Dec-13 CIR/IMD/FIIC/21/ 2013 Declaration and Undertaking regarding PCC, MCV or equivalent structure by FIIs 69 28-Nov-13 CIR/IMD/FIIC/19/2013 Investments by FII/QFIs in Credit Enhanced Bonds 70 13-Sep-13 CIR/IMD/FIIC/15/2013 Debt Allocation Mechanism for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 94 31-Mar-11 CIR/IMD/FIIC/5/2011 FII Investment in corporate bonds infra long term category 95 29-Mar-11 CIR/IMD/FIIC/4/2011 Dissemination of further information about FII activity-Discontinues of Reporting 96 08-Mar-11 CIR/IMD/FIIC/3/2011 Allocation of Government debt long term & corporate debt -old investment limits to FIIs 97 18-Jan-11 CIR/IMD/FIIC/2/2011 Addendum to the Circular No. CIR/IMD/FIIC/1/2011 98 17-Jan-11 CIR/IMD/FIIC/1/2011 Reporting of Offshore Derivative Instruments(ODIs)/ Participatory Notes(PNs) activity 99 26-Nov-10 CIR/IMD/FIIC/18/2010 Allocation of Government debt & Corporate debt investment limits to FIIs 100 06-Aug-10 CIR/IMD/FIIC/9/2010 Allocation of Government debt & Corporate debt investment limits to FIIs 101 11-Jun-10 CIR/IMD/FII/3/2010 Allocation of Corporate debt investment limits to FIIs 102 15-Apr-10 CIR/IMD/FIIC/1/2010 Additional information regarding PCC, MCV or equivalent structure by FIIs. 103 15-Dec-09 IMD/FII & C/41/2009 Allocation methodology of debt investment limits to FIIs 104 04-Sep-09 IMD/FII & C/40/2009 Allocation methodology of debt investment limits to FIIs 105 12-May-09 IMD/FII & C/39/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Bank Account SECURITIES AND EXCHANGE BOARD OF INDIA Name of Bank, Branch ICICI Bank Ltd., Bandra Kurla Complex, Bandra (East), Mumbai 400051 Bank Account No 055501001994 IFSC Code ICIC0000555 MICR Code No. 400229029 Swift Code No. ICICINBBNRI Annexure E Information of intermediate material shareholder/ owner entity illustration: * FPI ABC, a trust, is held 75% by XYZ Ltd. (intermediate material shareholder/ owner) - therefore XYZ needs to be identified and the identification of underlying individuals / non-individuals having controlling ownership interest in the FPI OR control of XYZ should be identified * XYZ is further controlled by PQR fund (trust)- Hence, PQR fund also needs to be identified on a look through basis. * Mr. ST is holding 35% in PQR fund and Mr. UV is holding 15% in PQR fund - So, Mr. ST needs to be identified as BO. Information of Intermediate material shareholder/ owner- on Ownership basis Name Direct / Indirect Stake Names of the entity(ies) through which the stake in the FPI is held indirectly Percentage stake held in the applicant Country/Nationality Individual /Non-Individual XYZ Ltd. Direct 75 Non-Individual Information of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... VARIOUS SERVICES PROVIDED BY DDP S.no. Type of Service Expected Timelines * 1 FPI registration (a) Fresh Registration Within 30 days (b) Renewal of FPI Registration Within 15 days (c) Surrender of FPI Registration Within 10 working days of receipt of NOC from SEBI 2 Within 10 working days of receipt of NOC from SEBI Within 30 days of receipt of approval from incoming DDP 3 Off-Market (Free of Payment) transfers permitted as per SEBI Master Circular for FPIs, DDPs and EFIs Within 15 days 4 KYC Review / Update Jurisdiction FPI Category - I FPI Category - II High Risk Registered under Reg. 5(a)(i) - During continuance of registration i.e. every 3 years. Others -Annually Annually Non-High Risk During continuance of registration i.e. every 3 years. Regulated entities during continuance of registration i.e. every 3 years. Others-Annually. * above timelines will apply to cases where application is complete in all respects Annexure H General Guidance for Investors: S.No. Guidance 1 Provide Complete, Accurate and Latest information for FPI registration. 2 Adhere to all the rules, regulations, investment limits / conditions prescribed by the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
