The Securities and Exchange Board of India has issued the Securities and Exchange Board of India (Foreign Portfolio Investors) (Second Amendment) Regulations, 2021 vide notification dated October 26, 2021 to further amend the SEBI (Foreign Portfolio Investors) Regulations, 2019 in the following manner:
- Regulation 4 has been amended and a new proviso has been inserted as under:
A designated depository participant shall consider an application for grant of certificate of registration as a foreign portfolio investor if the applicant satisfies the following conditions namely:
The applicant is a non-resident Indian or overseas citizen of India or resident Indian individual’s maybe constituents of the applicant provided they meet the conditions specified by the Board from time to time:
“Provided further that resident Indian, other than individuals, may also be constituents of the applicant, subject to the following conditions, namely –
- the applicant is an Alternative Investment Fund setup in the International Financial Services Centres and regulated by the International Financial Services Centres Authority;
- such resident Indian, other than individuals, is a Sponsor or Manager of the applicant; and
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;”
Tanvi Singh, Editorial Assistant has reported this brief.