The International Financial Services Centres Authority (IFSCA) on May 02, 2024, issued a circular regarding facilitating investments by NRIs and OCIs into Indian securities through Schemes / Funds in an IFSC.
The following has been stated: -
•The SEBI Board, approved the following alternative routes for increased participation by NRIs and OCIs in Indian securities through IFSC-based FPIs:
a.Alternative route 1: NRI/OCI/RI investors may contribute up to 100% in the corpus of IFSC-based FPIs where such FPIs will be, inter alia, required to submit copies of PAN (or other suitable documents in the absence of the same), of all their NRI/OCI/RI individual constituents, along with their economic interests in the FPI, to the DDP. The modalities for this alternative shall be specified by SEBI.
b.Alternative route 2: NRI/OCI/RI investors may contribute up to 100% in the corpus of IFSC-based FPIs without the FPI required to submit the above-mentioned documents, provided it satisfies the conditions detailed in paragraph 3 below.
•This circular is issued in exercise of the powers conferred under sections 12 and 13 of the International Financial Services Centres Authority Act, 2019, read with regulation 146 of the Regulations, and shall come into force with immediate effect.
[Circular No. F.No. IFSCA-IF-10PR/2/2024-Capital Markets]
