The Bombay Stock Exchange (BSE) on September 11, 2023, issued the Guidelines for the identification of a Foreign Entity/Person as a Promoter.
The following has been stated namely: -
• The following guidelines were issued with respect to the identification of a foreign entity/person as a promoter:
1. Foreign citizens/nationals cannot be identified as promoter
2. Foreign entity/ies can be identified as promoter/promoter group subject to certain conditions such as, they need to comply with Reserve Bank of India norms and any other requirements of the Securities and Exchange Board of India and/or Exchange.
3. The identified foreign entities have to comply with any of the specified norms:
a. The promoting foreign entity or any of its holding company/subsidiary should be either a bank or insurance company regulated by the Central Bank or such other relevant regulatory authority of that respective country and has a net worth of at least Rs. 50 crores.
b. The promoting foreign entity or any of its holding company/subsidiary should be a broking house/participant in the securities market that is registered or regulated by the relevant regulatory authority of that respective country and that the relevant authority should be a member of the International Organization of Securities Commission (IOSCO).
This shall come into force on September 11, 2023
[Notification No. 20230911-38]
