The Securities and Exchange Board of India (SEBI), on June 26, 2024, notified the Securities and Exchange Board of India (Foreign Portfolio Investors) (Second Amendment) Regulations, 2024 to further amend the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019.
The following has been stated-
•In regulation 4, in clause (c), i. the words and symbol “provided they meet the conditions specified by the Board from time to time:” shall be substituted with the following words and symbol, namely, - “subject to the following conditions:
othe contribution of a single non-resident Indian or overseas citizen of India or resident Indian individual shall be below twenty-five percent of the total contribution in the corpus of the applicant;
othe aggregate contribution of non-resident Indians, overseas citizens of India and resident Indian individuals in the corpus of the applicant shall be below fifty percent of the total contribution in the corpus of the applicant;
othe contribution of resident Indian individuals shall be made through the Liberalised Remittance Scheme notified by the Reserve Bank of India and shall be in global funds whose Indian exposure is less than fifty percent;
othe non-resident Indians, overseas citizens of India and resident Indian individuals shall not be in control of the applicant; and
oany other conditions as may be specified by the Board from time to time.”
•After the second proviso, the - “Provided further that the provisions of sub-clause (ii) of clause (c) shall not be applicable to an applicant, regulated by the International Financial Services Centres Authority and based in the International Financial Services Centres in India and subject to conditions as may be specified by the Board: Provided further that the existing exemptions specified by the Board in relation to the conditions under sub-clauses (i) to (iv) of clause (c) of this regulation as on the date of notification of the Securities and Exchange Board of India (Foreign Portfolio Investors) (Second Amendment) Regulations, 2024 shall continue to remain in force.” provisos shall be inserted.
[Notification No. SEBI/LAD-NRO/GN/2024/185]
