TaxTMI 
TaxTMI 
Operational Guidelines for Designated Depository Participants
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....erred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. The circular is available on SEBI website at www.sebi.gov.in under the categories "Legal framework" and "information for - FII". Yours faithfully, S. Madhusudhanan Deputy General Manager +91-22-26449614 [email protected] SEBI (Foreign Portfolio Investors) Regulations, 2014 Operational Guidelines for Designated Depository Participants These operational guidelines for Designated Depository Participants ("DDPs") are issued to facilitate implementation of SEBI (Foreign Portfolio Investors) Regulations, 2014 ("the Regulations"). 1.0 Engagement of DDP Each FPI shall engage a DDP before making investment in Indian securities market. At all times the DDP and the Custodian of Securities ("Custodian") of the FPI shall be the same entity. 2.0 Registration of FPI by DDP 2.1 Scrutiny of applications The application received for grant of registration as FPI in the format prescribed under the Regulations (Form A) shall be scrutinized by the DDP on the parame....
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....applicant is a part of any investor group? (Yes) / (No) 13 Whether the name of the applicant figures in the list of defaulters (for default in payment of fees) available on SEBI website (Yes) / (No) 14 Whether the name of the applicant has been checked in the publicly available sources for ascertaining any regulatory action against the applicant? (Yes) / (No) 15 Whether the applicant complies with the eligibility criteria as specified under SEBI (FPI) Regulations, 2014. (Yes) / (No) * This checklist is only illustrative and therefore does not prohibit DDP to obtain any other suitable information/ document from the applicant. 2.3 In case of an applicant being a bank or its subsidiary, the respective DDP shall forward the relevant details of the applicant such as its name & address to SEBI. SEBI would in turn request RBI to provide its comments. Based on the comments received from RBI, SEBI would intimate the comments of RBI to DDP accordingly. 2.4 Where the application form is incomplete, or lacks clarity, the applicant shall be advised by the DDP to clarify or furnish the desired information within a reasonable time. 2.5 Conditional Registration If the applicant is n....
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....) may be obtained by the DDPs from the respective applicants in the format as prescribed in Form A of the Regulations. 4.4 Where different FPIs belonging to the same investor group are serviced by different custodians, the custodians shall report the holdings to both the depositories. The depositories shall club the investment limits and ensure that combined holdings of all these FPIs does not exceed 10% of the issued capital of the investee company at any time. Information regarding FPI groups: S No. Name of the reporting entity Registration no. of reporting entity Name of FPI with whom the applicant shares common end beneficial owners Registration no. of FPI Demat Account No. of FPI mentioned at col. C A B C D E F Instructions for providing investor group information: * FPIs shall provide details of all entities having direct or indirect common shareholding / beneficial ownership / beneficial interest, of more than 50%, as a part of their group, for submitting this data. * The common beneficiary owner(s) shall be identified on the basis of (1) shareholding, (2) voting rights (3) any other forms of control, in excess of 50%, across FPIs, if any. * In case of F....
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....ect or indirect change in control, change in regulatory status, merger, demerger or restructuring, change in category, change in structure etc. 5.1.3 The DDP shall examine all such material changes and re-assess the eligibility of the FPI. 5.1.4 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. 5.2 Permission for Disinvestment 5.2.1 FPIs which are not desirous of continuing with the registration but are holding certain securities, may hold such securities after expiry of registration. Such FPIs shall be permitted to hold the residual securities for subsequent disposal, after the expiry of FPI registration, subject to receipt of specific permission from DDP in this regard. 5.2.2 The procedure for seeking permission for disinvestment by FPIs after expiry of registration is given below: 5.2.2.1 At the time of expiry of registration, the FPI desiring permission for disinvestment shall make a request to DDP along with details of its holdings. 5.2.2.2 The DDP may grant such permission for disinvestment with an initial validity period of 6 mon....
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....risdiction, which was compliant with SEBI (FPI) Regulations at the time of grant of registration to FPI, becomes non compliant i.e. ceases to be member of IOSCO/BIS or the concerned jurisdiction is listed in FATF public statement as "high risk" and "non-cooperative" jurisdiction, then concerned Custodian shall not allow the FPIs belonging to such jurisdictions to make fresh purchases till the time the jurisdiction is compliant with SEBI (FPI) Regulations. However, the FPI shall be allowed to continue to hold the securities already purchased by it. 5.5.2 The concerned DDP shall inform to SEBI a list of such jurisdiction along with the details of FPIs belonging to the jurisdiction. 5.6 Other Changes relating to FPI 5.6.1 DDP shall take note of the other changes such as change in Compliance Officer, change in contact details and address and update the records accordingly. 5.6.2 If change in address results in change in home jurisdiction of FPI, the DDP shall reassess the eligibility of FPI as per the Regulations. 6.0 Obligation of DDP with regard to taxation The DDP shall set up a mechanism for tax deduction and payment in compliance with the directions issue....