Post-registration securities disposal: new framework permits sale windows with a financial disincentive and escrow sale mechanism and reporting obligations. SEBI amends FPI and Custodian Master Circulars to allow FPIs who lapse or fail to re activate registration defined disposal windows: 180 days post lapse (no disincentive), an additional 180 days subject to a 5% financial disincentive on sale proceeds remitted to the IPEF, subject to KYC/AML/CFT compliance. Unsold securities after the combined 360 days are deemed written off, losing beneficial interest; custodians must transfer written off securities to escrow accounts operated by exchange empanelled brokers for sale, with net proceeds transferred to the IPEF and prescribed reporting by custodians and exchanges.
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Post-registration securities disposal: new framework permits sale windows with a financial disincentive and escrow sale mechanism and reporting obligations.
SEBI amends FPI and Custodian Master Circulars to allow FPIs who lapse or fail to re activate registration defined disposal windows: 180 days post lapse (no disincentive), an additional 180 days subject to a 5% financial disincentive on sale proceeds remitted to the IPEF, subject to KYC/AML/CFT compliance. Unsold securities after the combined 360 days are deemed written off, losing beneficial interest; custodians must transfer written off securities to escrow accounts operated by exchange empanelled brokers for sale, with net proceeds transferred to the IPEF and prescribed reporting by custodians and exchanges.
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