Sebi revises guidelines for writing off securities by foreign investors

For the write off, the process prescribed in the operational guidelines has to be complied with, Sebi added

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Sebi norms | Sebi | FPIs

Press Trust of India  |  New Delhi 

The move, according to industry experts, means around Rs 35,000 crore each will have to be allocated to mid- and small-cap stocks unless schemes decide to merge their multi-cap schemes with large-cap ones or convert their multi-cap schemes to another
"However, in view of the requests received from various stake holders, it has been decided to permit said FPIs to write-off shares of all companies which they are unable to sell," Sebi said in a circular on Monday.

Markets regulator Sebi on Monday permitted foreign portfolio investors (FPI) to write off shares of all the companies which they are unable to sell.

As per operational guidelines for FPIs and designated depository participants (DDPs) issued in November 2019, write-off of securities held by FPIs who wished to surrender their registration was permitted only in respect of shares of companies which are unlisted/ illiquid / suspended/ delisted.

"However, in view of the requests received from various stake holders, it has been decided to permit said FPIs to write-off shares of all companies which they are unable to sell," Sebi said in a circular on Monday.

For the write off, the process prescribed in the operational guidelines has to be complied with, Sebi added.

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First Published: Tue, September 22 2020. 00:08 IST
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