The Securities and Exchange Board of India (SEBI) on October 26, 2021 has issued the Securities and Exchange Board of India (Foreign Portfolio Investors) (Second Amendment) Regulations, 2021 to further amend the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019.
In Regulation 4 which specifies “Eligibility criteria of foreign portfolio investor”, the proviso has been inserted, namely: -
Provided further that resident Indian, other than individuals, may also be constituents of the applicant, subject to the following conditions, namely –
i. The applicant is an Alternative Investment Fund setup in the International Financial Services Centres and regulated by the International Financial Services Centres Authority.
ii. Such resident Indian, other than individuals, is a Sponsor or Manager of the applicant.
iii. The contribution of such resident Indian, other than individuals, shall be up toa. 2.5% of the corpus of the applicant or US $ 7,50,000 (whichever is lower) in case the applicant is a Category I or Category II Alternative Investment Fund; or b. 5% of the corpus of the applicant or US $ 1.5 million (whichever is lower) in case the applicant is a Category III Alternative Investment Fund.”
[Notification No- SEBI/LAD-NRO/GN/2021/54]
