TaxTMI 
TaxTMI 
Operational Guidelines for Designated Depository Participants
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....is issued in exercise of powers conferred 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 ....
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...., in general? (Yes) / (No) 9 Brief details of the activities carried out by the applicant. 10 Whether the applicant is fit and proper? (Yes) / (No) 11 PCC/MCV status of the applicant 12 Whether the 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....
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....erned DDPs shall consider all such entities having direct or indirect common shareholding/ beneficial ownership/ beneficial interest of more than 50%, as belonging to same investor group. The DDP shall report the details of investor group(s) to the depositories. 4.3 Information regarding investor group(s) 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 I....
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....uch breach of investment limit to SEBI, forthwith. 5.0 Miscellaneous Approvals 5.1 Change in Material Information 5.1.1 Under the Regulations, "if there is any material change in the information previously furnished by it to the Designated Depository Participant and/or Board, which has a bearing on the certificate granted by the Designated Depository Participant on behalf of the Board, it shall forthwith inform the Designated Depository Participant and/or the Board; 5.1.2 Such material change may include: direct 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....
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....nal action, as deemed fit, by SEBI. 5.3.4 The DDP shall, forthwith, forward all such cases of delayed reporting to SEBI for appropriate penal action, if any. 5.4 Change in DDP/Custodian In case the FPI wishes to change the DDP/Custodian, the request for change shall be intimated to SEBI through the concerned DDP/Custodian. On receipt of no objection from the existing /transferor DDP/Custodian and acceptance from the proposed / transferee DDP/Custodian, then approval from SEBI shall be sought by concerned FPI. 5.5 Change in Status of a Compliant Jurisdiction 5.5.1 If a jurisdiction, 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....