Circular,
CIR/IMD/FIIC/6/2014, dated March 28, 2014
To,
1. All
Custodians of Securities
2. All Foreign
Institutional Investors through their designated Custodians of
Securities
3. Depository
Participants through Depositories
4. All
Depositories
5. All
Recognized Stock Exchanges
Commencement of
Foreign Portfolio Investor ("FPI") regime
1. SEBI (Foreign Portfolio Investors)
Regulations, 2014 ("the Regulations") have been notified on January
07, 2014. Subsequently, SEBI has issued Operational Guidelines for Designated
Depository Participants ("DDPs") vide SEBI Circular No. CIR/IMD/FIIC/02/2014
dated January 8, 2014.
2. In terms of Regulation 47 (3) (c) of
the Regulations, "the Board may continue to grant certificate of
registration as a foreign institutional inventor or sub-account under the Securities
and Exchange Board of India (Foreign Institutional Investors) Regulations, 1995
till March 31, 2014 which may be extended upto June 30, 2014 by the Board".
3. In this regard, market participants
have communicated to SEBI that they are still in process of putting in place
necessary systems and procedures to discharge their assigned role effectively.
Accordingly, they have sought an extension of time for implementation of the
FPI regime.
4. Considering the representations of the
market participants, it has now been decided as follows:
a. The FPI regime
shall commence with effect from June 01, 2014.
b. SEBI shall
continue to accept all applications for registration of FIIs and Sub Accounts
till May 31, 2014 provided such applications are complete in all respects.
c. SEBI shall continue to accept all applications for acknowledgment
of fee till May 31, 2014, in respect of those FIIs and Sub Accounts whose fee
validity is expiring on or before September 30, 2014 provided such applications
are complete in all respects.
d. SEBI shall continue to accept all applications for miscellaneous
requests till May 31, 2014 provided such applications are complete in all
respects.
e. With effect from June 01, 2014, the DDPs shall accept all
applications for registration, acknowledgment of fees, and miscellaneous
requests.
f. Those Qualified Depository Participants (QDPs) who are deemed as
DDPs under Regulation 11(1) of the Regulations may continue to open QFI accounts
till May 31, 2014.
5. This circular is
issued in exercise of powers conferred under Section 11(1) of the Securities
and Exchange Board of India Act, 1992 to protect the interests of investors in
securities and to promote the development of, and to regulate the securities market.
6. The circular is
available on SEBI website at www.sebi.gov.in under
the categories "Legal framework" and "information for -
FII".
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