The Gazette of India has issued a notification dated May 31,
2024, and published on June 3, 2024 ("Commencement
Date") (available here) which amended
the SEBI (Foreign Portfolio Investors) Regulations, 2019
("FPI Regulations").
An overview of the same is set out hereunder:
▪ Pursuant to the SEBI (Foreign Portfolio Investors)
(Amendment) Regulations, 2024
("Amendment"), a Foreign Portfolio
Investor ("FPI") holding
securities or derivatives in
India, whosecertificate of
registration is not valid
as on the Commencement Date, is allowed
to sell such securities or wind up their open position in
derivatives in India within 360 days from the
Commencement Date, as specified by SEBI, thereby modifying
the erstwhile period (i.e., 1 year from the publication
date of the FPI Regulations).
▪ Further, an FPI is required to pay the
registration fees for every
period of 3 years, before the
commencement of the said period.
▪ If the registration and late fee,
as may be applicable are not paid within 30
days from the expiration of the
aforesaid3-year period, and the FPI
continues to hold securities or derivatives in India, it is
allowed to sell such securities or wind
up their open position in derivatives within 360
days from the date of expiry of the 30-day period
("Extended Period"), as specified by
SEBI.
▪ An FPI, with an invalid certificate of
registration and who has not sold off the securities
or wound up their open position in derivatives as per the FPI
Regulations, is deemed to have written off such
securities, as specified by SEBI.
▪ The additional periods granted vide the Amendment are
without prejudice to any actions that may be initiated by SEBI.
The contents of this article do not necessarily reflect the views/position of Stratage Law Partners but remain solely those of the author(s). This article is meant for general information and shall not be deemed to be a legal advice or opinion. This article is neither intended to be an advertisement or solicitation.