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SEBI Issues Guidelines On FPIs Registered Under Multiple Investment Managers

FPIs need to provide the name of its investment manager at the time of request for new FPI registration.

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Capital markets regulator SEBI on Monday came out with framework for foreign portfolio investors registered under multiple investment managers structure.

Under this, SEBI said that in case an entity engages multiple investment managers for managing its investments, then the entity can obtain multiple FPI registrations mentioning name of investment manager for such registration entity.

Earlier, external investment managers were required in case of MIM structures.

Such applicants can appoint different designated depository participants for each such registration, the Securities and Exchange Board of India said in a circular. Investments made under such multiple registrations will be clubbed for the purposes of monitoring of investment limits, it added.

As per the norms, in case of MIM structures, if the entity has already furnished registration details to a DDP at the time of its registration, then, the entity will not be required to again provide the registration details for each new FPI registration under this structure, unless there has been a change in the registration details provided to a DDP earlier.

However, such FPIs need to provide the name of its investment manager at the time of request for new FPI registration along with the confirmation that information provided in earlier application is updated and valid.