Sep 30, 2021

Amendments to FPI Regulations

SEBI has on August 3, 2021 amended the SEBI (Foreign Portfolio Investor) Regulations, 2019, to provide that non-resident Indians and overseas citizens of India and resident Indian individuals may be constituents of the applicant seeking registration as a foreign portfolio investor (‘FPI’) if they fulfill the conditions specified by SEBI. Further, resident Indians (other than an individual) may also be constituents of an applicant seeking registration as an FPI, if: (a) such resident Indian (other than an individual) is an eligible fund manager of the applicant; and (b) the applicant is an eligible investment fund. Subsequently, SEBI has, by a Circular dated August 4, 2021, amended the ‘Operational Guidelines for Foreign Portfolio Investors and Designated Depository Participants’ issued under Circular dated November 5, 2019, to state that the contribution of resident Indian individuals will be required to be made through the liberalised remittance scheme notified by the Reserve Bank of India (‘RBI’) and such contribution will be in global funds whose Indian exposure is less than 50%.




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