TaxTMI 
TaxTMI 
Securities And Exchange Board of India (Foreign Portfolio Investors) (Third Amendment) Regulations, 2018
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....es 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 or....
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....ss than 50%. (iii) the non-resident Indians, 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 j....
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....erted, namely, - "(2)(1) An applicant or an existing foreign portfolio investor shall comply with 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 posit....
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....agency" shall mean an entity in which more than 75% of ownership or control is held by the Government of a foreign country." d. in regulation 21, in sub-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 ....
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....to one correlation with a single investor is not maintained; and (iii) pension funds. iii. after the newly inserted sub-regulation (3A), the following new sub-regulation shall be inserted and numbered as sub-regulation (4), namely, - "(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 wo....
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....l have the same meaning assigned to the term "beneficial owner" as defined under the Prevention of Money Laundering Act, 2002." ii. in sub-regulation (2), in clause (f), the words "beneficial ownership" shall be substituted with the words "common ownership or control". h. in the Second Schedule, 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....