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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Framework for providing flexibility to Foreign Portfolio Investors in dealing with their securities post expiry of their registration

05-Jun-2024 | SEBI/HO/AFD/AFD-PoD-2/P/CIR/2024/77

SEBI has issued circular on Framework for providing flexibility to Foreign Portfolio Investors in dealing with their securities post expiry of their registration. By virtue of circular, Para 13 of Part A of the Master Circular - Foreign Portfolio Investors(FPI) is modified. As per the revised provision, if an FPI registered under a particular category/sub-category fails to comply with applicable eligibility requirements, it shall notify this change to its DDP to be reclassified under appropriate category/sub-category in accordance with Para 14(i) and FPI shall be allowed to continue to sell the securities already purchased by it until expiry of its existing registration block or 180 days from the date of notification of change by the FPI, whichever is later. Para 15 of Part A of the Master Circular - Foreign Portfolio Investors is modified. As per the revised provision, If a jurisdiction, which was a compliant jurisdiction at the time of grant of registration to FPI, becomes non-compliant, then the Custodian shall not allow such FPIs to make fresh purchases until the jurisdiction/FPI is compliant with the Regulations. But FPI shall be allowed to sell the securities or continue to hold the securities already purchased by it until expiry of its existing registration block or 180 days from the date of change in status of the jurisdiction, whichever is later. For more information, please refer the attachment.

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