The Securities and Exchange Board of India (SEBI) on June 27, 2024, issued the notification regarding the Participation by Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs) and Resident Indian (RI) individuals in SEBI registered FPIs based in International Financial Services Centres in India.
The following has been stated namely: -
• Reference is drawn to the Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors dated May 30, 2024.
• The Afore-said Master Circular has been amended namely: -
o The following sub-para shall be inserted after sub-para1(ii)(d) of Part A namely: -
“c. The provisions of sub-clause (ii) of clause (c) of Regulation 4 of the FPI Regulations, 2019 shall not be applicable to an applicant based in IFSCs in India and regulated by IFSCA, subject to the conditions”
o The following proviso shall be added to sub-para 1(xiii)(a) of Part C namely: -
“Provided that in case of an FPI to which provisions of sub-clause (ii) of clause (c) of Regulation 4 of the FPI Regulations, 2019 are not applicable, the holding threshold shall be 33% instead of 50%”
This shall come into force from June 27, 2024.
[Notification No. SEBI/HO/AFD/AFD-POD-2/P/CIR/2024/89]
