**Summary:**
SEBI Circular No. SEBI/HO/IMD/FPIC/CIR/P/2021/045, dated March 30, 2021, outlines additional guidelines for Designated Depository Participants (DDPs) regarding the surrender of Foreign Portfolio Investor (FPI) registration, effective immediately. This circular supplements the operational guidelines issued on November 5, 2019, under circular No. IMDFPICCIRP2019124.
The circular mandates that DDPs, when applying to SEBI for a No Objection Certificate (NOC) for FPI registration surrender, must confirm that: (i) all FPI accounts have a NIL balance and are blocked, including the CP code; (ii) no fees are pending towards SEBI; and (iii) no actions or proceedings are pending against the FPI applicant.
Furthermore, DDPs must ensure that (i) all accounts, including bank and securities accounts held by the FPI, are closed; and (ii) the CP code is deactivated within 10 working days of receiving the NOC from SEBI.
Custodians and DDPs are advised to inform their clients about these provisions. This circular is issued under the authority of Section 11(1) of the Securities and Exchange Board of India Act, 1992. The circular is accessible on the SEBI website (www.sebi.gov.in) under the "Circulars" section.
For further information, contact Amit Tandon, General Manager, at Tel. No: 022-26449373 or via email at amitt@sebi.gov.in.
Key Entities Referenced
Foreign Portfolio Investors: Refers to investors who invest in financial assets of a country from outside of that country.
Designated Depository Participants: Entities authorized to provide depository services to Foreign Portfolio Investors.
Depositories NSDL and CDSL: National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) are the two depositories mentioned in the context of FPI registration.
Securities and Exchange Board of India: Regulatory authority for securities markets in India.
SEBI Foreign Portfolio Investors Regulations, 2019: Regulations established by SEBI governing the registration and operation of Foreign Portfolio Investors.
Securities and Exchange Board of India Act, 1992: The law that establishes SEBI and defines its powers.
Amit Tandon: General Manager at SEBI, the signatory of the circular.
Operational Guidelines for FPIs and DDPs: Guidelines issued by SEBI via circular No. IMDFPICCIRP2019124 dated November 05, 2019, prescribing procedural requirements for FPIs and DDPs.
SEBI/ HO/ IMD/ FPI&C/ CIR/ P/ 2021/ 045
March 30, 2021
To
1. Foreign Portfolio Investors (“FPIs”)
2. Designated Depository Participants ("DDPs") and Custodians
3. The Depositories (NSDL and CDSL)
4. The Recognized Stock Exchanges(Exchanges) and Clearing Corporations
Dear Sir/ Madam,
Sub: Guidelines pertaining to Surrender of FPI Registration
1. In terms of SEBI (Foreign Portfolio Investors) Regulations, 2019, any FPI
(‘applicant’) desirous of surrendering the certificate of registration may request for
such surrender to the DDP.
2. Operational Guidelines for FPIs and DDPs issued vide SEBI circular No.
IMD/FPI&C/CIR/P/2019/124 dated November 05, 2019 prescribes the procedural
requirements to be followed by the DDP for processing such requests.
3. In order to have a uniform market practice for processing of such surrender
requests, DDPs shall adhere to the following additional guidelines:
a) While making an application to SEBI for seeking “No Objection Certificate” (NOC)
for surrender, the DDP shall confirm the following with respect to the FPI:
i) Accounts held by the applicant in the capacity of FPI have NIL balance and
are blocked for further transactions. Further, the CP code of the FPI is also
blocked.
ii) There are no dues/ fees pending towards SEBI.
iii) There are no actions/ proceedings pending against the said applicant.
b) DDP shall ensure that:
i) all the accounts (including bank account and securities account) held by the
applicant in the capacity of FPI are closed; and
ii) the CP code is deactivated
within 10 working days from the date of receipt of NOC from SEBI.
Page 1 of 24. This circular shall come into force with immediate effect.
5. Custodians and DDPs are advised to bring the provisions of this circular to the
notice of their clients.
6. This circular is issued in exercise of the powers conferred by Section 11(1) of
Securities and Exchange Board of India Act, 1992.
7. A copy of this circular is available at the web page “Circulars” on our website
www.sebi.gov.in.
Yours faithfully,
Amit Tandon
General Manager
Tel. No: 022-26449373
Email id: amitt@sebi.gov.in
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