Executive Summary:
This notification announces the Securities and Exchange Board of India Foreign Portfolio Investors Second Amendment Regulations, 2021. These regulations further amend the 2019 regulations regarding foreign portfolio investors. They come into force on the date of their publication in the Official Gazette, October 26, 2021.
Key Points / Main Content:
Amendments to the 2019 Regulations:
* In clause (c) of regulation 4, the symbol ";" in clause (ii) of the first proviso is replaced with ":".
* A new proviso is inserted after the first proviso, concerning resident Indians as constituents of the applicant:
* The applicant must be an Alternative Investment Fund set up in the International Financial Services Centres and regulated by the International Financial Services Centres Authority.
* The resident Indian (other than individuals) must be a Sponsor or Manager of the applicant.
* The contribution of such resident Indian (other than individuals) is limited to:
* 2.5% of the corpus or US$750,000 (whichever is lower) for Category I or II Alternative Investment Funds.
* 5% of the corpus or US$1.5 million (whichever is lower) for Category III Alternative Investment Funds.
Impact Analysis:
Foreign Portfolio Investors:
* Impact: Subject to revised conditions regarding the inclusion of resident Indians as constituents, particularly for Alternative Investment Funds in International Financial Services Centres.
* Action Required: Ensure compliance with the new contribution limits and conditions if resident Indians are part of their structure.
Alternative Investment Funds (AIFs) in International Financial Services Centres (IFSCs):
* Impact: AIFs set up in IFSCs now have clarity on the permissible involvement of resident Indians as sponsors or managers.
* Action Required: Review their structure and constituent agreements to align with the new regulations, especially regarding contribution limits.
Resident Indians (other than individuals):
* Impact: Now permitted to be constituents (Sponsors or Managers) of applicant AIFs in IFSCs, subject to specific conditions and investment limits.
* Action Required: Assess eligibility and ensure compliance with contribution limits if participating in AIFs in IFSCs.
Key Entities Referenced
Securities and Exchange Board of India: A regulatory body in India responsible for regulating the securities market.
Securities and Exchange Board of India Act, 1992: An act of the Indian Parliament that established the Securities and Exchange Board of India (SEBI).
Securities and Exchange Board of India Foreign Portfolio Investors Regulations, 2019: Regulations pertaining to foreign portfolio investors issued by the Securities and Exchange Board of India.
Securities and Exchange Board of India Foreign Portfolio Investors Second Amendment Regulations, 2021: Amendment regulations to the Securities and Exchange Board of India Foreign Portfolio Investors Regulations, 2019.
Mumbai, Maharashtra: The city in India where the notification was issued.
Alternative Investment Fund: A privately pooled investment fund.
International Financial Services Centres Authority: Regulatory authority for International Financial Services Centres (IFSCs) in India.
Ajay Tyagi: Chairman of the Securities and Exchange Board of India at the time of notification.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-26102021-230724
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CG-MH-E-26102021-230724
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 513] नई ददल्ली, मगं लिार, अक्त बू र 26, 2021/कार्ततक 4, 1943
No. 513] NEW DELHI, TUESDAY, OCTOBER 26, 2021/KARTIKA 4, 1943
भारतीय प्रजतभजू त और जिजनमय बोडड
अजधसचू ना
मुम्बई, 26 अक् तूबर, 2021
भारतीय प्रजतभजू त और जिजनमय बोडड
(जिदेिी पोर्डफोजलयो जनििे क) ( सिं ोधन) जिजनयम, 2021
स.ं सबे ी/एल.ए.डी-एन.आर.ओ./िी.एन/2021/54.—बोडड, भारतीय प्रजतभूजत और जिजनमय बोड ड
अजधजनयम, 1992 (1992 15) की धारा 11 की उप-धारा (2) के खंड (ग) के साथ पठित धारा 30 द्वारा गई
िजियों का प्रयोग करत े हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजनमय बोडड (जिदेिी पोर्फड ोजलयो जनिेिक) जिजनयम,
2019 का और संिोधन करने के जलए जनम्नजलजखत जिजनयम बनाता ह,ै अथाडत् -
1. इन जिजनयमों को भारतीय प्रजतभूजत और जिजनमय बोड ड (जिदेिी पोर्डफोजलयो जनिेिक) ( संिोधन)
जिजनयम, 2021 कहा िा सकेगा ।
2. ि े रािपत्र म ें उनके प्रकािन की तारीख को लाग ूहोंगे ।
3. भारतीय प्रजतभूजत और जिजनमय बोडड (जिदेिी पोर्डफोजलयो जनिेिक) जिजनयम, 2019 म,ें-
I. 4 (ग) ,
i. (ii) , “;” “:” ग
ii. , ग , , -
6170 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“ औ ,
ई , –
i. ( ) , गठ
औ
( ) ;
ii. ( ) ( ) ( )
; औ
iii. ( ) , –
क. 2.5% 7,50,000 (
), ग -I ग -II ;
ख. 5% 1.5 (
), ग -III ;”
अिय त्यागी, अध्यक्ष
[जिज्ञापन-III/4/असा./377/2021-22]
पाद ठर्प्पण:
1. भारतीय प्रजतभूजत और जिजनमय बोडड (जिदेिी पोर्डफोजलयो जनिेिक) जिजनयम, 2019, स.ं सेबी/एल.ए.डी.-
एन.आर.ओ./िी.एन./2019/36 द्वारा, 23 जसतम्बर, 2019 को भारत के रािपत्र म ेंप्रकाजित हुए थ े।
2. भारतीय प्रजतभूजत और जिजनमय बोडड (जिदेिी पोर्डफोजलयो जनिेिक) जिजनयम, 2019 तत्पश्चात्,-
(1) 19 ददसम्बर 2019 को भारतीय प्रजतभूजत और जिजनमय बोडड (जिदेिी पोर्डफोजलयो जनिेिक) (संिोधन)
जिजनयम 2019, स.ं सेबी/एल.ए.डी.-एन.आर.ओ./िी.एन./2019/44, द्वारा
(2) 7 2020 को भारतीय प्रजतभूजत और जिजनमय बोडड (जिदेिी पोर्डफोजलयो जनिेिक) (संिोधन) जिजनयम
2020, स.ं सेबी/एल.ए.डी.-एन.आर.ओ./िी.एन./2020/09, द्वारा
(3) 17 अप्रैल 2020 भारतीय प्रजतभूजत और जिजनमय बोड ड (रेग्यूलेर्री सडैं बॉक्स) (संिोधन) जिजनयम, 2020,
स.ं सेबी/एल.ए.डी.-एनआरओ/िीएन/2020/10, द्वारा
(4) 3 ग 2021 भारतीय प्रजतभूजत और जिजनमय बोड ड (रेग्यूलेर्री सैंडबॉक्स) (संिोधन) जिजनयम, 2021,
स.ं सेबी/एलएडी-एनआरओ/िीएन/2021/30, द्वारा
(5) 3 ग 2021 को भारतीय प्रजतभूजत और जिजनमय बोडड (जिदेिी पोर्डफोजलयो जनिेिक) (संिोधन) जिजनयम
2021, स.ं सेबी/एल.ए.डी.-एन.आर.ओ./िी.एन./2021/32, द्वारा
संिोजधत हुए थ े।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 26th October, 2021
SECURITIES AND EXCHANGE BOARD OF INDIA (FOREIGN PORTFOLIO INVESTORS)
(SECOND AMENDMENT) REGULATIONS, 2021
No. SEBI/LAD-NRO/GN/2021/54.—In exercise of the powers conferred by section 30 read with
clause (c) of sub-section (2) of section 11 of the Securities and Exchange Board of India Act, 1992 (15 of
1992), the Board hereby makes the following regulations to further amend the Securities and Exchange
Board of India (Foreign Portfolio Investors) Regulations, 2019, namely–[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
1. These Regulations may be called the Securities and Exchange Board of India (Foreign Portfolio
Investors) (Second Amendment) Regulations, 2021.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019, –
I. In clause (c) of regulation 4,
i. in clause (ii) of the first proviso, the symbol “;” shall be substituted with the
symbol “:”.
ii. after the first proviso, the following proviso shall be inserted, namely, –
“Provided further that resident Indian, other than individuals, may also be
constituents of the applicant, subject to the following conditions, namely –
i. the applicant is an Alternative Investment Fund setup in the
International Financial Services Centres and regulated by the
International Financial Services Centres Authority;
ii. such resident Indian, other than individuals, is a Sponsor or
Manager of the applicant; and
iii. the contribution of such resident Indian, other than individuals,
shall be up to-
a. 2.5% of the corpus of the applicant or US $ 7,50,000
(whichever is lower), in case the applicant is a Category I
or Category II Alternative Investment Fund; or
b. 5% of the corpus of the applicant or US $ 1.5 million
(whichever is lower), in case the applicant is a Category III
Alternative Investment Fund;”
AJAY TYAGI, Chairman
[ADVT.-III/4/Exty./377/2021-22]
Footnote:
1. The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 were
published in the Gazette of India on September 23, 2019 vide No. SEBI/LAD-NRO/GN/2019/36.
2. The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 were
subsequently amended on, –
(1) 19th December, 2019 by the Securities and Exchange Board of India (Foreign Portfolio
Investors) (Amendment) Regulations, 2019 vide No. SEBI/LAD-NRO/GN/2019/44.
(2) 7th April, 2020 by the Securities and Exchange Board of India (Foreign Portfolio Investors)
(Amendment) Regulations, 2020 vide No SEBI/LAD-NRO/GN/2020/09.
(3) 17th April, 2020 by the Securities and Exchange Board of India (Regulatory
Sandbox) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10.
(4) 3rd August, 2021, by the Securities and Exchange Board of India (Regulatory Sandbox)
(Amendment) Regulations, 2021, vide No. SEBI/LAD-NRO/GN/2021/30.
(5) 3rd August, 2021 by the Securities and Exchange Board of India (Foreign Portfolio
Investors) (Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/32.
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