SEBI Tweaks Operational Guidelines For FPIs, Depository Participants
SEBI's new guidelines -- pertaining to the registration certificates of FPIs and change in their names -- will be effective May 9.
The Securities and Exchange Board of India has tweaked the operational guidelines for depository participants and foreign portfolio investors.
The new guidelines -- pertaining to registration certificates of such foreign investors and change in their names -- will be applicable from May 9, the capital markets regulator said in a circular on Friday.
The move comes after SEBI notified rules in January for generation of FPI registration numbers. Subsequently, in March, the union finance ministry amended the Common Application Form, wherein both the depositories -- NSDL and CDSL -- have been allowed to host the CAF for FPI registration.
In order to operationalise the same, the capital markets regulator has decided decided to modify the operational guidelines.
With regard to registration certificate for FPIs, SEBI said that the designated depository participant will grant the certificate of registration, bearing the registration number generated by the markets regulator.
In case an FPI has undergone a change in name, Sebi said the designated depository participant will effect the name change in the certificate after receiving such request.
"The DDP [designated depository participant] shall issue a letter and fresh registration certificate to such applicant acknowledging the change in name," SEBI said in the circular. "Respective depositories shall make necessary arrangements for DDPs to provide fresh registration certificate as an acknowledgement from its database including a statement that the name change has been granted without prejudice to any tax liability/ implication in India."