TaxTMI 
TaxTMI 
Exemption from clubbing of investment limit for foreign Government agencies and its related entities
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.... and omitted the following regulation: "Regulation 20 (9) In cases where the Government of India enters into agreements or treaties with other sovereign Governments and where such agreements or treaties specifically recognize certain entities to be distinct and separate, the Board may, during the validity of such agreements or treaties, recognize them as such, subject to conditions as may be specified by it." 2. In line with rule 1(a)(iv) of Schedule II of Foreign Exchange Management (Non-debt Instruments) Rules, 2019 regarding "Investments by Foreign Portfolio Investors", certain foreign Government agencies and its related entities are exempt from clubbing of investment limit requirements and other investment conditions either by way of an agreement or treaty with other sovereign governments or by an order of the Central Government. 3. In view of the above, clause 1(x) of Part C of Operational guidelines for FPIs & DDPs and EFIs regarding "Monitoring of investment limit at investor group level" has been amended accordingly. The amend....
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....Compliant Jurisdiction 15 16. Other Changes relating to FPI. 16 17. Index of Circulars: ………………... Error! Bookmark not defined. PART B - KNOW YOUR CLIENT REQUIREMENTS FOR FOREIGN PORTFOLIO INVESTORS (FPIs). 16 1. KYC documentation requirements for FPI. 16 2. Sharing of KYC documents with banks towards opening of bank accounts of FPIs 18 3. Identification and verification of Beneficial Owners. 4. Periodic KYC review... 5. Data security. 6. Period for maintenance of records.. 7. Guidelines for KYC:. 8. List of supporting documents: 9. Index of Circulars: 18 20 20 21 21 22 Error! Bookmark not defined. 2 PART C - Investment Conditions / Restriction on Foreign Portfolio Investors registered SEBI (Foreign Portfolio Investor) Regulations, 2019... 1. Limit monitoring at investor group level .22 22 2. Limit monitoring at aggregate level 23 3. Off-Market transfer of securities. 30 4. "to be listed" shares 30 5. Short sale of securities.. 30 6. Investment by FPI through primary market issuances 30 ....
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....ons shall be deemed to have been registered either as Category | FPI or Category II FPI under the Regulations, depending on the eligibility criteria met by such FPIs under the Regulations, as illustrated below: Table 1 Existing Categories as per 2014 Regulations Appropriately regulated broad based funds such as mutual funds, investment trusts, insurance/reinsurance companies; already Appropriately regulated persons such as banks, asset management companies, investment managers/ advisors, portfolio managers, broker dealers and swap dealers University funds and pension funds university related endowments registered with the Board as foreign institutional investors or sub-accounts Unregulated funds/entity categorized as Cat II by virtue of Regulated Investment Manager also registered as Category II FPI New Categories Regulations as per the (i) All Insurance entities – Category I; (ii) Funds from FATF member countries - Category I ; (iii)Funds from non-FATF countries - Category II member All are re-categorized as Category I All are re-categorized as Category I All are re-categor....
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....) The list of countries whose Central Bank is a member of the BIS BIS. (d) List of countries that are listed in the public statements issued by FATF and list of FATF member country 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 Memorandum of Understanding with SEBI would be eligible for grant of registration as FPI. Any reference in the Regulations and in these Operating Guidelines, 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 regulated, is appropriately regulated in a FATF member country. Non-resident Indian (NRI) / overseas citizens of India (OCI) / resident Indians (RI) check - DDP may obtain requisite declaration from applicant for satisfying eligibility criteria under regulation 4 of the Regulations and the conditions mentioned below relating to NRIs, OCIS an....
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....ortfolio investor shall liquidate its existing position in Indian securities market within a period of the next one hundred and eighty days. 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. Category | FPI check - DDP may verify the eligibility of Category | 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. 7 V. vi. vii. viii. 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 the registration details directly from the registry or the website of such regulator. Explanation: Certain type of structures in some....
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.... 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 | FPI. Where such entities are undertaking investments on behalf of their clients, Category II FPI registration shall be granted subject to following conditions: Ä°. Clients of FPI can only be individuals and family offices. ii. iii. iv. Clients of FPI should also be eligible for registration as FPI and should not be dealing on behalf of third party. If the FPI is from a Financial Action Task Force member country, then the KYC including identification & verification of beneficial owner of the clients of such FPI ....
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....r application is updated and valid. Such FPls registered under MIM structure shall have the same PAN. Where the entity seeks registration under this structure with another custodian/DDP, the investor or existing custodian/DDP shall provide certified true copy of the application form to new custodian/DDP. 5. Continuance of Registration i. ii. iii. iv. V. vi. FPIs who wish to continue with their registration for the next block of three years, should pay the fees to their DDPs and inform change in information, if any, as submitted earlier. In case of no change in information, FPIs shall give declaration that there is no change in the information, as previously furnished. 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. If DDP is in receipt of registration fees prior to validity date but the due-diligence includi....
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....ate mechanisms for the purposes of reviewing, monitoring and evaluating its controls, systems, procedures and safeguards. 9. Reporting: İ. ii. Every DDP shall submit to SEBI monthly reports on application received from FPI applicants as per the format set out in Annexure C hereto and such other reports as may be required by SEBI. The report pertaining to a month may be submitted by DDPs to SEBI latest by 10 th of the following month. 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. 10. 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) (wh....
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....ir local custodian/DDP. 13 iii. iv. 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. 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. 13. Requirement for segregated portfolios i. ii. = iii. iv. Funds investing in India include those with sub-funds or separate classes of shares or equivalent structure with segregated portfolio for such sub-funds or separate classes of shares or equivalent s....
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....anted by the DDP on behalf of the 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. 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. 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. 16. Change in Status of a Compliant Jurisdiction Ä°. 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 c....
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....red Required Owner (UBO) BO3 9 Proof of Identity Not Required Required 1 Power of Attorney having address provided to Custodian is accepted as address proof. 16 2 Power of Attorney 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. 3 UBO is not required for Government and Government related entities. Notes to the Table: i. ii. iii. iv. V. vi. vii. viii. ix. FPIs to provide an undertaking that upon demand by Regulators/Law Enforcement Agencies the exempted / relevant document/s would be submitted to the intermediary. 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. FPI Category Il 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. For non-PAN related KYC documents (including KYC form), a local custodian can ....
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....to share the relevant KYC documents with the banks concerned based on appropriate authorization. Accordingly, a set of hard copies of the relevant KYC documents furnished by the FPIs to intermediaries may be transferred to the concerned bank through their authorised representative. 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 P....
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...., for identification as BO, means individual(s) as designated by the FPI who holds a senior management position and makes key decisions relating to the FPI. No foreign company shall be entitled to exemption under Rule 9(3)(f) of PMLA Rules. In case of companies/ trusts represented by service providers like lawyers/ accountants, FPIs should provide information of the real owners/ effective controllers of those companies / trusts. If the BO exercises controls through means like 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. 19 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 custod....
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....ble to the intermediaries who have uploaded/downloaded/modified, such FPIs KYC details in the past, even when the Download Consent Flag is set as “Yes†or otherwise. g. In case the FPI closes the account with an intermediary, the FPI or the intermediary shall inform KRA to delink the KYC of such FPI, so that unsolicited download request can be discontinued. 7. Period for maintenance of records The Custodian should maintain the KYC records in original for a minimum period of five years from the date of cessation of the transactions with the said FPI. In case any litigation is pending, these records should be maintained till the completion of the proceedings. 8. Guidelines for KYC: İ. ii. iii. iv. V. vi. vii. 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. If any proof of identity or address i....
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....ower of Attorney given by FPI to Custodians specifying the address (duly notarized and/or apostilled or consularised). Intermediary may rely on constitutive documents to establish Proof of residency for multilateral organisations. Proof of address to be submitted only if the submitted POI does not have an address or address as per POI is invalid or not in force. PART C - Investment Conditions / Restriction on Foreign Portfolio Investors registered SEBI (Foreign Portfolio Investor) Regulations, 2019 1. Monitoring of investment limit at investor group level i. Where multiple FPIs belong to the same investor group as provided under Regulation 22(3) of the Regulations, the investment limits of all such FPIs taken together shall be clubbed at the investment limit as applicable to a single FPI. For individuals registered as FPIs, the individual and his/her relatives who is/are also 22 ii. iii. iv. V. vi. vii. viii. ix. X. registered as FPI(s) should also be considered for the purposes of investor group. The definition of "relative†shall be as per Section 2 Sub section 77 of the Companies Act, 2013. ....
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....ring of Investment Limit at individual level In order to facilitate the listed Indian companies to ensure compliance with the various foreign investment limits, architecture of the System has been explained as under:- Housing of the System 23 23 A. The system for monitoring the foreign investment limits in listed Indian companies shall be implemented and housed at the depositories (NSDL and CDSL). Designated Depository B. A Designated Depository is a depository which has been appointed by an Indian company to facilitate the monitoring of the foreign investment limits of that company. As defined at Rule 2(y) of FEMA (Non-debt Instruments) Rules, 2019 (hereinafter referred as FEMA Rules), the term 'Indian company' means a company incorporated in India. C. The Designated Depository shall act as a lead depository and the other depository shall act as a feed depository. Company Master D. The company shall appoint any one depository as its Designated Depository for the 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 India....
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....ided by the circulars issued by RBI in this regard. Activation of a Red Flag Alert J. The monitoring of the foreign investment limits shall be based on the paid-up equity capital of the company on a fully diluted basis to ensure that all foreign investments are in compliance with the foreign investment limits. K. A red flag shall be activated whenever the foreign investment is 3% or less than 3% of the aggregate NRI/FPI limits or the sectoral cap. This shall be done as follows: Aggregate NRI investment limit in the company a. The system shall calculate the percentage of NRI holdings in the company and the investment headroom available as at the end of the day with respect to the aggregate NRI investment limit b. If the available headroom is 3% or less than 3% of the aggregate NRI investment limit, a red flag shall be activated for that company. c. Thereafter, the depositories and exchanges shall display the available 25 investment headroom, in terms of available shares, for all companies for which the red flag has been activated, on their respective websites. d. The data on the available investment headroom shall be updated on a ....
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....the depositories shall inform the exchanges about the breach. The exchanges shall issue the necessary circulars/public notifications on their respective websites and shall halt all further purchases by: m. FPIs, if the aggregate FPI limit is breached n. NRIs, if the aggregate NRI limit is breached o. All foreign investors, if the sectoral cap is breached N. In the event of a breach of the sectoral cap/aggregate FPI limit/aggregate NRI limit, the foreign investors shall divest their excess holding within 5 trading days from the date of settlement of the trades, by selling shares only to domestic investors. Method of disinvestment O. The proportionate disinvestment methodology shall be followed for disinvestment of the excess shares so as to bring the foreign investment in a company within permissible limits. In this method, depending on the limit being breached, the disinvestment of the breached quantity shall be uniformly spread across all foreign Investors/FPIs/NRIs which are net buyers of the shares of the scrip on the day of the breach. P. This method has been illustrated with the help of an example provided below. Table 7 To....
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....the custodial confirmation of the trade executed on T day shall be done on T+2 day and the subsequent settlement of the trade on T+3 day. In such a scenario, the breach would be detected at the end of T+2 day. V. A table summarizing the breach-disinvestment scenario is given below Table 8 Parameter Date of breach Purchase on T Day Purchase on T+1 T day T day Date of trade T day T+1 day Date of detection T+1 day (End of day) T+1 day (End of day) of breach T+2 day (End of Day, if T+1 is a T+2 day (End of Day), if T+1 is settlement holiday a settlement holiday Date of T+2 day settlement transaction of Disinvestment time frame T+3 day T+3 day, if either T+1 day or T+2 T+4 day, if either T+2 day or day is a settlement holiday T+3 day is a settlement holiday 5 trading days from the date of settlement of the transactions which were executed on the day of the breach i.e. 5 trading days from T+2 day If T+1 day or T+2 day is a settlement holiday, then 5 trading days from T+3 day 5 trading days from the date of settlement of the transactions which were executed on T+1 ....
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.... Investment by FPI through primary market issuances As per Regulation 20(7) of the Regulations, the purchase of equity shares of each company by a single foreign portfolio investor or an investor group shall be below ten percent of total paid-up equity capital on a fully diluted basis of the company. ii. To ensure compliance of the above, at the time of finalization of basis of allotment during primary market issuances, Registrar and Transfer Agents ('RTAS') shall use PAN issued by Income Tax Department of India for checking 30 iii. compliance for a single FPI. Also, RTAs should obtain validation from Depositories for the FPI investor group who have invested in the particular primary market issuance to ensure there is no breach of investment limit within the timelines specified by SEBI for issue procedure. Bids by FPIs submitted under MIM structure with the same PAN but with different beneficiary account numbers, Client IDs and DP IDs may not be treated as multiple bids. 7. Transfer of Right entitlements FPI shall ensure that the transfer of rights entitlements shall be at market price or fair value, as applicable. 8. Ris....
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....tments exceeds 95% of the CDIL (as indicated by the debt utilisation status updated daily on the websites of NSDL and CDSL), the following procedure shall be followed: a. The depositories (NSDL and CDSL) shall direct the custodians to halt all FPI purchases in corporate debt securities. b. The depositories shall then inform the exchanges (NSE and BSE) regarding the unutilised debt limits for conduct of auction. Upon receipt of information from the depositories, the exchange (starting with BSE) shall conduct an auction for the allocation of unutilised debt limits on the second trading day from the date of receipt of intimation from the depositories. Thereafter, the auction shall be conducted alternately on NSE and BSE. c. The auction shall be held only if the free limit is greater than or equal to INR 100 cr. However, if the free limit remains less than INR 100 cr for 15 consecutive trading days, then an auction shall be conducted on the sixteenth trading day to allocate the free limits. d. The auction shall be conducted in the following manner: 32 iii. iv. Particulars Duration of bidding: Access to platform Minimum b....
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....ll take exposure in equity index derivatives subject to the following limits:- (a) Short positions in index derivatives (short futures, short calls and long puts) not exceeding (in notional value) the FPI's holding of stocks. (b) Long positions in index derivatives (long futures, long calls and short puts) not exceeding (in notional value) the FPI's holding of cash, government securities, T bills and similar instruments. iii. The position limit in index derivative for Cat. II FPI shall be as under:- (a) Higher of INR 300 crore or 10% of open interest for cat II FPIs (other than individuals, family offices and corporates). (b) Higher of INR 100 crore or 5% of open interest for Cat II FPIs under subcategory of Individuals, family offices, corporates. iv. The above limits shall be separately applicable for equity index futures and equity index options as per the current mechanism for all categories of FPIs. 12. FPI Position Limits in Exchange Traded Interest Rate Futures (IRF) i. Following position limits shall be applicable for Category I & II FPIs other than FPIs in sub-category individuals, family offices, corporates): a) A limit o....
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....ves segment and Position limits for currency derivatives contracts i. FPIs are permitted to trade in the currency derivatives segment of stock exch anges, subject to terms and conditions as mentioned below: Position limits of Category I and II FPIs other than individuals, family offices and corporates: The gross open positions of the above FPIs across all contracts in the respective currency pairs shall not exceed the limits as mentioned below. Currency Pairs Position Limits USD-INR EUR-INR GBP-INR JPY-INR Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher. Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 50 million, whichever is higher. Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 50 million, whichever is higher. Gross open position across all contracts shall not exceed 15% of the total open interest or JPY 2000 million, whichever is higher. ii. Position limits of category II FPIs that are individuals, family offices and corporates....
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....ed to have an underlying exposure in Indian debt or equity securities, including units of equity/debt mutual funds FPIs are allowed to take positions in the exchange traded cross-currency futures and option contracts in the EUR-USD, GBP-USD and USD-JPY currency pairs and exchange traded currency option contracts in EUR-INR, GBP-INR and JPY-INR currency pairs, subject to terms and conditions as mentioned below Position limits of Category I and II FPIs other than individuals, family offices and corporates: Currency Position Limits Pairs EUR- USD Gross open position across all contracts shall not exceed 15% of the total open interest or EUR 100 million, whichever is higher. 37 GBP- USD USD- JPY Gross open position across all contracts shall not exceed 15% of the total open interest or GBP 100 million, whichever is higher. Gross open position across all contracts shall not exceed 15% of the total open interest or USD 100 million, whichever is higher. The aforementioned limits shall be the total limits available to the stock brokers for taking positions on proprietary basis and for positions of their clients. ....
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....ity" for the purpose of capturing and disseminating FPI investment data. 15. Investments by FPIs in corporate bonds under default i. ii. iii. iv. FPIs are permitted to acquire NCDs/bonds, which are under default, either fully or partly, in the repayment of principal on maturity or principal instalment in the case of an amortising bond. FPIs shall be guided by RBI's definition of an amortising bond in this regard. The revised maturity period for such NCDs/bonds restructured based on negotiations with the issuing Indian company, should be as per the norms prescribed by RBI from time to time, for FPI investments in Corporate Debt. The FPIs shall disclose to the Debenture Trustees, the terms of their offer to the existing debenture holders/beneficial owners of such NCDs/bonds under default, from whom they propose to acquire. 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. 16. Clarification regarding adherence to below 10% investment limit In the event an FPI and ....
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....P of such FPI shall process the surrender after obtaining the approval from the Board. V. vi. Monetary corporate benefits if received by the Custodians shall be credited to the Investors Protection and Education Fund of SEBI not later than 30 days from the date of receipt of the same. Non-monetary corporate benefits if received shall accumulate in the demat account. 40 40 PART D - Issuance of Offshore Derivative Instruments by Foreign Portfolio Investors under SEBI (Foreign Portfolio Investor) Regulations, 2019 This section consolidates the requirements prescribed by SEBI relating to issuance of Offshore Derivative Instruments (ODIs) by Foreign Portfolio Investors (FPIs) and matters connected therewith. 1. Conditions for issuance of ODIs Ä°. ii. FPIs shall not be allowed to issue ODIs referencing derivatives. Further, no FPI shall be allowed to hedge their ODIs with derivative positions on stock exchanges in India. As an exception to above clause (i), the following is permitted through a separate FPI registration of an ODI issuing FPI under Category I: (a) Derivative positions that are taken on stock exchange....
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....ODI and proprietary derivative investments through separate FPI registrations. Such separate registrations should be in the name of FPI with "ODI" as suffix under same PAN. Where such addition is being requested for an existing FPI, this addition of suffix will not be considered change in name of of FPI and DDP may process this request and issue a new FPI registration certificate. An ODI issuing FPI cannot co-mingle its non-derivative proprietary investments and ODI hedge investments with its proprietary derivative investment or vice versa in same FPI registration. No fresh derivative position which are not in compliance with above requirements shall be allowed henceforth. FPIs have 90 days' time from date of publication of the Operating Guidelines to comply with above requirements. Off-market transfer of assets/ positions will be allowed for FPIs intending to transfer assets/ position from one FPI account to another FPI account to comply with above requirements. An ODI subscriber who became ineligible under the Regulation may continue to hold their existing positions till December 31, 2020. No renewal/rollover of existing positions b....
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.... subscriber Senior Management List (Whole Time Directors/ Partners/ ii. iii. iv. V. vi. Trustees etc.) The ODI issuing FPIs shall maintain with them at all times the KYC documents regarding ODI subscribers and should be made available to SEBI on demand. Offshore Derivative Instrument (ODI) issuing FPIs shall identify and verify the BOS in the ODI subscriber entities, as applicable to FPIs. Beneficial owner and intermediate shareholder/owner entity with holdings equal & above the materiality thresholds in the ODI subscriber need to be identified through the look through basis. The list of BOs of ODI subscribers be maintained as per Table 6. ODI issuing FPIs shall also continue to collect identification document number (such as passport, driving license) of BO of ODI subscriber. For intermediate material shareholder/ owner entity/ies, name, country and percentage holding shall also be disclosed as per Annexure E. The KYC review shall be done on the basis of the risk criteria as determined by the ODI issuers, as follows: a) In case of high risk ODI subscribers, on yearly basis b) In case of all other ODI subscr....
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....- Annexure B _ Debt to ( Month) - 5. Details of Underlying Trade(s) in Indian Market - For the Period of Derivative - Annexure B _ Derivative to ( Month) - 6. Details of Underlying Trade(s) in Indian Market - For the Period of Hybrid - Annexure B _ Hybrid to ( Month) - 7. Details of Assets Under Management in Indian Market - Equity as on reporting date of the Month ) - Annexure C _ Equity (Last 8. Details of Assets Under Management in Indian Market - Debt as on reporting date of the Month )- Annexure C _Debt (Last 9. Details of Assets under Management in Indian Market - Derivative as on reporting date of the Month) - Annexure C _ Derivative (Last 10. Details of Assets Under Management in Indian Market - Hybrid as on |reporting date of the Month) - Annexure C _ Hybrid (Last V. 11. Annexure D - Statement on Beneficial owners of ODI subscribers* 12. Annexure E - Reconciliation/Reconfirmation Report ODI Issuing FPI should compulsorily reflect all their ODIs to Indian underlying in each row of MSR in a true & fair manner. Thus, advise given vide circular dated June 15, 2011 that "The ODI I....
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....gistered Intermediary during the time of account opening & registration shall be considered. Segregation of accounts: FPIs, who presently operate in Indian securities market and propose to operate in IFSC also, shall be required to ensure clear segregation of funds and securities. Custodians shall, in turn, monitor compliance of this provision for their respective FPI clients. Such FPIs shall keep their respective custodians informed about their participation in IFSC 47 Annexure-A The following circulars issued by the Board shall stand rescinded: Date of Circular Reference 15-Apr-10 CIR/IMD/FIIC/1/2010 19-Dec-13 CIR/IMD/FIIC/21/2013 8-Jan-14 CIR/IMD/FIIC/02/2014 28-Apr-14 04-Jan-17 CIR/IMD/FIIC/09/2014 IMD/HO/FPIC/CIR/P/2017/003 12-Jun-15 CIR/IMD/FIIC/05/2015 15-Feb-18 CIR/IMD/FPIC/26/2018 13-Mar-18 CIR/IMD/FPIC/47/2018 21-Mar-18 IMD/FPIC/CIR/P/2018/53 SEBI/HO/IMD/FPIC/CIR/P/2018 CIR/IMD/FPIC/CIR/P/2018/132 CIR/IMD/FPIC/CIR/P/2018/131 10-Apr-18 /66 21-Sep-18 21-Sep-18 11-Oct-18 13-Dec-18 /150 5-Sep-12 12-Sep-13 SEBI/HO/FPIC/CIR/P/2018/135 SEBI/HO/IMD/FPIC/CI....
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.... 2018 on Know Your Client Requirements for Foreign Portfolio Investors (FPIs) Know Your Client Requirements for Foreign Portfolio Investors (FPIs) Issuance of Derivative Instruments by Registered Foreign Institutional Investors (FII Review of Investment by Foreign Portfolio Investors (FPI) in Debt Securities FII investments in Debt Securities FII investments in Debt Securities FII investments in Debt Securities FII investments in Debt Securities Allocation methodology of debt investment limits to Fils Allocation methodology of debt investment limits to Fils Allocation methodology of debt investment limits to Fils Allocation methodology of debt investment limits to Fils Allocation of Corporate debt investment limits to Fils Date of Circular Reference 06-Aug-10 CIR/IMD/FIIC/9/2010 26-Nov-10 CIR/IMD/FIIC/18/2010 08-Mar-11 CIR/IMD/FIIC/3/2011 31-Mar-11 CIR/IMD/FIIC/5/2011 29-Jul-11 CIR/IMD/FIIC/11/2011 26-Aug-11 CIR/IMD/FIIC/15/2011 30-Sep-11 CIR/IMD/FIIC/18/2011 18-Nov-11 CIR/IMD/FIIC/20/2011 03-Jan-12 CIR/IMD/FIIC/1/2012 13-Jan-12 CIR/IMD/FII&C/3/201....
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....mercial papers Change in investment conditions / restrictions for FII/QFI investments in government debt securities Change in Government Debt Investment Limits Clarification on Government Debt Investment Limits Change in investment conditions for FPI investments in Government Debt securities Investments by FPIs in Government securities 06-Oct-15 CIR/IMD/FIIC/8/2015 29-Mar-16 IMD/FPIC/CIR/P/2016/45 Investments by FPIs in Government securities 03-Oct-16 IMD/FPIC/CIR/P/2016/107 Investments by FPIs in Government securities 03-Apr-17 IMD/FPIC/CIR/P/2017/30 Investments by FPIs in Government securities 04-Jul-17 IMD/FPIC/CIR/P/2017/74 Investments by FPIs in Government securities 04-Oct-17 IMD/FPIC/CIR/P/2017/113 Investments by FPIs in Government securities 20-Dec-17 IMD/FPIC/CIR/P/2017/129 Investments by FPIs in Government securities 29-Mar-11 CIR/IMD/FIIC/4/2011 Dissemination of further information about FII activity-Discontinues of Reporting 51 Date of Circular Reference 09-Jul-13 CIR/IMD/FIIC/9/2013 28-Nov-13 CIR/IMD/FIIC/19/2013 20-Jan-14 CIR/MRD/DRMNP/2/2014 1....
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.... IMD/CUST/15/2004 Title Review of Investment by Foreign Portfolio Investors (FPI) in Debt Investment by Foreign Portfolio Investors (FPI) through primary market issuances Clarification on clubbing of Investment limits of Foreign Portfolio Investors ("FPls") Permitting Foreign portfolio Investors (FPI) to invest in Municipal Bonds Issuance of Derivative Instruments by Registered Foreign Institutional Investors (FII Issuance of Offshore Derivative Instruments by Registered Foreign Institutional Investors (FII Issuance of Offshore Derivative Instruments by Registered Foreign Institutional Investors (FII) Reporting of Offshore Derivative Instruments by Registered Foreign Institutional Investors (FII) Reporting of Offshore Derivative Instruments(ODIs)/ Participatory Notes(PNs) 17-Jan-11 CIR/IMD/FIIC/1/2011 activity 18-Jan-11 CIR/IMD/FIIC/2/2011 Addendum to the Circular No. CIR/IMD/FIIC/1/2011 12-May-11 CIR/IMD/FIIC/6/2011 Reporting of Offshore Derivative Instrument s(ODIS)/ Participatory Notes (PNS) activity of Reporting Offshore Derivative Instruments(ODIs)/ Participat....
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....is liable to be rejected. 2.2 Details for appropriately regulated entities seeking registration under Category I FPI Investing entity Non-Investing entity 2.3 Separate registration for the purposes of hedging the ODIs with derivatives as underlying in India?(applicable only for Category I) ☠Yes ☠No 56 2.4 Whether the applicant is seeking registration under Multi Investment Manager (MIM) structure? ☠Yes No 2.5 If segregated portfolio is maintained for each sub-funds or share classes/ equivalent structures of the applicant, names of such sub-funds or share classes/ equivalent structures that intend to invest in India. Sr. No. Name of sub-funds or share classes/ equivalent structures that intend to invest in India (Details can be provided under separate annexure) 2.6 Details of Investment Manager of FPIs which are registered under regulation 5 (a) of SEBI (FPI) Regulations, 2019 (as amended from time to time), if applicable or FPI seeking registration under MIM structure Sr. No. Name of Investment Manager SEBI Registration No., if any 2.7 Details of eligible Category I entity re....
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.... appointed 5.1 Details of the DDP/Custodian Name SEBI Registration number 5.2 Details of designated bank: Name of the Bank and Branch Address 6. Details of prior association with the Indian securities market. 6.1 Whether the applicant was anytime registered as FPI, FII, sub account, QFI or FVCI with the Securities and Exchange Board of India. ☠Yes If yes, then please provide details: Name of the entity No Registered/associate d as 59 SEBI Registration No. (if applicable) 7. Declaration and Undertaking I/We, the applicant, do hereby declare that what is stated in the aforesaid application form (including the enclosed documents/annexures) is complete and true to the best of my/our information and belief. I/we undertake to inform you of any changes therein, immediately. In case any of the above information is found to be false or untrue or misleading or misrepresenting, I am/we are aware that I/we may be held liable for it. I/we hereby apply for registration as Foreign Portfolio Investor in accordance with the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 20....
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....FPI. Incorporated/setup under Indian laws and appropriately registered with 3. ☠We are a non-investing FPI directly or indirectly fully owned and/ or controlled by a NRI/ OCI/ RI. 4. We are an offshore fund for which no-objection certificate has been provided by SEBI in terms of SEBI (Mutual Funds) Regulations, 1996 SECTION B - II: NRI/OCI/RI – Entitlement in FPI - 1. We confirm that there are no NRI/OCI/RI who are constituents/investors in the FPI 2. We confirm that NRIs/ OCIs/ RIs* as investors in the FPI and contributions by single NRI/OCI/RI including those of NRI/OCI/RI controlled Investment Manager 61 3. 4. are below 25 percent of the corpus of the FPI and in aggregate is below 50 percent of the corpus of FPI * Explanation: Resident Indian's contribution, if any, that is made through Liberalised Remittance Scheme (LRS) approved by Reserve Bank of India in our funds and our Indian exposure is less than 50%. OR Investments by NRI/OCI/RI in the FPI are not meeting above condition(s) and we confirm that we will meet the condition(s) within two years from the date of registration. OR None of....
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....plicant ((if different from Registered Address) Address ii. Postal Code Telephone No. Web-site Country Fax No Specify the proof of address submitted for address iii. Contact Details (email ID is mandatory) Tel. Tel. (Off.) (Res.) Mobile Fax No. No. iv. V. Email ID Latest available Net worth in INR (cannot be older than one year from the date of application; please provide date) Net worth in INR As on dd/mm/yyyy Whether the applicant or the applicant's authorized signatories/ senior management is: A politically exposed person YES/NO YES/NO Related to a politically exposed person vi. Does FPI wish KRAs to seek consent prior to permitting any intermediary to download their KYC information (YES/NO) (If Yes, please provide below information) Name of authorized representative of FPI (optional) Email id 1 (Mandatory) : 64 Email id 2 (Optional) : Email id 3 (Optional) : Mobile number (optional): vii. Information in respect of authorized signatories/ senior management of FPI applicant PAN Sr. Name Relationship with Date of Birth Nationality (DD/MM/Y....
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....e month** than 30 registration ) pending for days of receipt of application ** more than 30 days ** * Indicate application type as 1. Fresh Registration 2. Continuance ** Applicable for application type Fresh Registration only. 40 67 Annexure D Sr. Fee report The report pertaining to a month to be submitted by DDPs/Depository to SEBI in the format prescribed under: of Registration Period Payment reference remittanc for which the fee is no./ Transaction ID Fees Categor Amount of Date No. of DDP of FPI (Registration/Contin y of FPI | Fees Name Name Type of uance 01 registration/Change in category) (US$) e in paid SEBI's Bank A/c The Bank account details to which the payment is to be done electronically is as follows- Bank Account Details: Name of Bank Account Name of Bank, Branch Saving Bank Account No IFSC Code SECURITIES AND EXCHANGE BOARD OF INDIA Bank of India, Bandra Kurla Complex, Bandra (East), Mumbai 400051. 012210210000007 BKID0000122 MICR Code No. 400013119 Swift Code No. BKIDINBBBKC If a DDP has not granted any re....