Site icon SCC Times

General Obligations and Responsibilities of FPIs and DDPs revised vide SEBI (Foreign Portfolio Investors) (Amendment) Regulations, 2023

SEBI

On 15-3-2023, the Securities and Exchange Board of India (‘SEBI’) notified the SEBI (Foreign Portfolio Investors) (Amendment) Regulations, 2023 to amend the SEBI (Foreign Portfolio Investors) Regulations, 2019.

Key Points:

  • A new clause has been inserted in Regulation 22 providing that the Foreign Portfolio Investor (‘FPI’) must ensure that accurate details regarding its investor group are always maintained with its Designated Depository Participant (‘DDPs’).

  • Description

    Regulation

    Previous

    Now

    1. General obligations and responsibilities of foreign portfolio investors.

    Reg. 22 (1) (b)

    The FPI was supposed to immediately inform the Board and designated depository participant in writing, if any information or particulars previously submitted to the Board or DDP were found to be false or misleading, in any material respect

    The FPI has to do the same as soon as possible but not later than 7 working days.

    Reg. 22 (5)

    In case of any direct or indirect change in structure or common ownership or control of the foreign portfolio investor, FPI should immediately bring the same to the notice of its designated depository participant.

    In case of any direct or indirect change in structure or common ownership or control of the foreign portfolio investor or investor group, FPI should, as soon as possible but not later than 7 working days, bring the same to the notice of its designated depository participant.

    2. Obligations and responsibilities of designated depository participants.

    Reg. 31 (1) (b)

    All DDPs who have been granted approval by the Board will have to:

    Immediately inform the Board in writing if any information or particulars previously submitted to the Board are found to be false or misleading, in any material respect.

    The DDP has to do the same as soon as possible but not later than 2 working days.

    Reg. 31 (1) (c)

    immediately inform the Board in writing, if there is any material change in the information previously furnished by him to the Board;

    The DDP has to do the same as soon as possible but not later than 2 working days.

Exit mobile version