CIRCULAR,
CIR/IMD/FIIC/21/ 2013, dated December 19, 2013
To,
All Foreign
Institutional Investors
through their
designated Custodians of Securities
SEBI
vide circular CIR/IMD/FIIC/1/2010 dated April 15, 2010 had mandated all Foreign
Institutional Investors/ Sub Accounts to submit Declaration and Undertaking
with regard to their opaque structure such as Protected Cell Companies (PCC),
Multi Class Share Vehicles (MCV) or equivalent structure.
In
light of representations received it is clarified as follows:
If
any applicant is required by its regulator or under any law to ring fence its
assets and liabilities from other funds/ sub funds, such applicant shall not be
treated as having opaque structure, provided:
a) the applicant is
regulated in its home jurisdiction
b) each fund/ sub fund in
the applicant satisfies broad based criteria, and
c) the applicant gives an
undertaking to provide information regarding its beneficial owners as and when
SEBI seeks this information.
The
custodians are requested to bring the contents of this circular to the notice
of their respective FII clients for necessary compliance.
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.
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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