Participation by Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and Resident Indian (RI) individuals in SEBI registered FPIs based in International Financial Services Centres in India

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.... 1. SEBI vide Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors No. SEBI/HO/AFD/AFD-PoD-2/P/CIR/P/2024/70 dated May 30, 2024 ("FPI Master Circular") has, inter alia, specified the conditions for participation by NRIs, OCIs and RI individuals in FPIs. 2. SEBI (Foreign Portfolio Investors) Second Amendment Regulations, 2024 were notified on June 26, 2024, amending the SEBI (Foreign Portfolio Investors) Regulations, 2019 ("FPI Regulations, 2019"), to inter alia, provide flexibility of having up to hundred percent aggregate contribution by NRIs, OCIs and RI individuals in the corpus of FPIs based in International Financial Services Centres ("IFSCs") in India and regulated by Int....

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.... from such RI individuals to the effect that they are exempted from obtaining PAN by the Indian tax authorities and the legal provision under which they are exempt; III. A copy of Indian passport, in case of NRIs; IV. A copy of the OCI card, in case of OCIs; V. A copy of any identity document issued by Government of India (such as Aadhaar, passport, etc.), in case of RI individuals. Any change in such details/documents submitted by the FPI shall be considered a 'Type II" material change in terms of Para 14(i) below. iii. In case of non-individual constituents of such FPIs, which are controlled directly or indirectly by one or more NRIs/OCIs/RI individuals, or where NRI/OCI/RI Individuals together hold 50% or more ownership or econ....

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....um of 20% of the corpus of the FPI can be invested in the equity shares of an Indian listed entity. Provided that an applicant not complying with this condition at the time of registration as FPI, shall comply within a period of three months from the date of registration as FPI. Provided further that in case of any passive breach of this condition, after the initial three months of registration, the Investment Manager / Fund Manager of the FPI shall take immediate steps to rectify the same, not later than three months of such breach. Active breaches, i.e., breaches caused by a market action of the FPI, as opposed to price movement in the market, shall be considered a violation and dealt with as per the extant provisions of the FPI Regul....