Sebi modifies operational guidelines for FPIs, depository participants
Premium- Under the revised guidelines, the designated depository participant shall grant the certificate of registration, bearing registration number generated by SEBI.
Market regulator, Sebi has modified the operational guidelines for Foreign Portfolio Investors (FPIs), Designated Depository Participants, and other eligible overseas for generating registration number.
In a statement on Friday, Sebi announced that to operationalize the same, it has been decided to modify the ‘Operational Guidelines for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors.
Sebi on January 14, 2022, notified a circular under SEBI FPI Amendment Regulations 2022, for generation of FPIs registration number by the regulator.
Subsequently, the Finance Ministry on March 29, 2022, amended the Common Application Form (CAF), wherein both the Depositories, viz., NSDL and CDSL have been allowed to host the CAF for FPI registration.
Thereby, Sebi has tweaked the operational guidelines for FPIs and the other mentioned investors.
Under the revised guidelines, the designated depository participant shall grant the certificate of registration, bearing registration number generated by SEBI.
Further, Sebi has directed that "upon receipt of the request for name change along with above mentioned documents, the DDP shall effect the change in name in the certificate. The DDP shall issue a letter and fresh registration certificate to such applicant acknowledging the change in name."
Also, Sebi directs that "Respective Depositories shall make necessary arrangements for DDPs to provide fresh registration certificate as an acknowledgment from its database including a statement that the name change has been granted without prejudice to any tax liability/ implication in India."
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The above-mentioned modifications will come into effect from May 09, 2022.