Executive Summary:
This document contains the Securities and Exchange Board of India Foreign Portfolio Investors Second Amendment Regulations, 2023. These regulations amend the 2019 regulations concerning foreign portfolio investors. The key changes pertain to thresholds related to money laundering rules and the provision of information/documents regarding ownership/control. The regulations came into force on August 10, 2023.
Key Points / Main Content:
* **General**
* These regulations are called the Securities and Exchange Board of India Foreign Portfolio Investors Second Amendment Regulations, 2023.
* These regulations came into force on August 10, 2023.
* **Amendments to the 2019 Regulations**
* Regulation 4(f): The phrase "twenty-five percent or more" is replaced with "more than the threshold prescribed under sub-rule 3 of rule 9 of the Prevention of Money-laundering Maintenance of Records Rules, 2005."
* Regulation 22: A new sub-regulation 6 is inserted, requiring foreign portfolio investors meeting Board-specified criteria to provide information/documents about persons with ownership, economic interest, or control.
* Regulation 22: A new sub-regulation 7 is inserted, specifying that the information/documents mentioned in sub-regulation 6 shall be provided in a manner specified by the Board.
Impact Analysis
* **Foreign Portfolio Investors (FPIs)**
* Impact: FPIs must adhere to the revised threshold for money laundering rules, potentially requiring adjustments to compliance procedures. Certain FPIs will also need to provide information/documents related to individuals with ownership, economic interest, or control.
* Action Required: FPIs should familiarize themselves with the new threshold under the Prevention of Money-laundering Maintenance of Records Rules, 2005. FPIs that meet the criteria specified by the Board need to prepare and provide information/documentation regarding ownership, economic interest, or control as per the Board's specified manner and timeline.
* **Securities and Exchange Board of India (SEBI)**
* Impact: SEBI will be responsible for enforcing the amended regulations.
* Action Required: SEBI will need to define the criteria for FPIs required to provide information on ownership/control and specify the manner in which this information should be provided.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body for securities and commodity market in India.
Securities and Exchange Board of India Act, 1992: Law establishing the Securities and Exchange Board of India and defining its powers and functions.
Depositories Act, 1996: An Act to provide for the establishment of depositories in securities with the objective of ensuring free transferability of securities with speed, accuracy and security by making use of improved systems of technology.
Securities and Exchange Board of India Foreign Portfolio Investors Regulations, 2019: Regulations governing foreign portfolio investors in India.
Securities and Exchange Board of India Foreign Portfolio Investors Second Amendment Regulations, 2023: Amendment to the Securities and Exchange Board of India Foreign Portfolio Investors Regulations, 2019.
Mumbai, Maharashtra: City in India; Location of the Securities and Exchange Board of India.
Prevention of Moneylaundering Maintenance of Records Rules, 2005: Rules pertaining to prevention of money laundering.
BABITHA RAYUDU: Executive Director at Securities and Exchange Board of India.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एxxचx.G-अID.H-1x0xx0 82023-248012
CG-MHxx-xEG-I1D0E0x8x2x 023-248012
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 558] िई ददल्ली, बहृ स्ट्प जतिार, अगस्ट्त 10, 2023/श्रािण 19, 1945
No. 558] NEW DELHI, THURSDAY, AUGUST 10 , 2023/SHRAVANA 19, 1945
भारतीय प्रजतभजू त और जिजिमय बोडड
अजधसचू िा
मुम्बई, 10 अगस्ट्त, 2023
भारतीय प्रजतभजू त और जिजिमय बोडड
(जिदेिी पोर्डफोजलयो जिििे क) (दसू रा सिं ोधि) जिजियम, 2023
स.ं सबे ी/एलएडी-एिआरओ/िीएि/2023/143.—बोडड, भारतीय प्रजतभूजत और जिजिमय बोड डअजधजियम, 1992
की धारा 11 की उप-धारा (1), धारा 11 की उप-धारा (2) के खंड (खक) तथा धारा 12 की उप-धारा (1) एिं (1क) के
साथ पठित धारा 30 की उप-धारा (1) द्वारा, और जिक्षेपागार अजधजियम, 1996 की धारा 25 के तहत, प्रदाि की गई
िजियों का प्रयोग करते हुए, एतद्द्वारा, भारतीय प्रजतभूजत और जिजिमय बोडड (जिदेिी पोर्डफोजलयो जििेिक) जिजियम,
2019 का और संिोधि करिे के जलए जिम्नजलजखत जिजियम बिाता है, अथाडत,् -
1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोड ड (जिदेिी पोर्डफोजलयो जििेिक) (दसू रा संिोधि)
जिजियम, 2023 कहा िा सकेगा ।
2. ये जिजियम रािपत्र म ेंइिके प्रकाजित होिे की तारीख से लाग ूहोंगे ।
5168 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
3. भारतीय प्रजतभूजत और जिजिमय बोडड (जिदेिी पोर्डफोजलयो जििेिक) जिजियम, 2019 म,ें -
I. जिजियम 4 म,ें खंड (च) म,ें िब्दों “पच्चीस प्रजतित या उसस े अजधक की जहस्ट्सेदारी हो” के स्ट्थाि पर,
िब्द तथा जचह्ि “जहस्ट्सेदारी धि-िोधि जििारण (अजभलेखों का अिुरक्षण) [प्रीिेंिि ऑफ मिी-लॉन्ड्रंग
(मेंर्ेिे्स ऑफ ठरकॉर्डसड)] जियम, 2005 के जियम 9 के उप-जियम (3) में जिधाडठरत की गई सीमा से
ज्यादा हो” आ िाएँग े ।
II. जिजियम 22 म,ें उप-जिजियम (5) के बाद, जिम्नजलजखत उप-जिजियम िोड़े िाएगँ ,े अथाडत,् –
“(6) बोडड द्वारा समय-समय पर जिधाडठरत दकए गए मािदडं ों को पूरा करि े िाले जिदेिी पोर्डफोजलयो
जििेिक को उि व्यजियों से संबंजधत िािकारी प्रस्ट्तुत करिी होगी या दस्ट्तािेि प्रस्ट्ततु करिे होंगे,
जििकी जिदेिी पोर्डफोजलयो जििेिक में कोई जहस्ट्सेदारी हो, जििका जिदेिी पोर्डफोजलयो जििेिक म ें
कोई आर्थडक जहत हो या जििका जिदेिी पोर्डफोजलयो जििेिक पर दकसी तरह का कोई जियंत्रण हो ।
(7) उप-जिजियम (6) में जिस िािकारी या जिि दस्ट्तािेिों का जिक्र दकया गया है, िे उसी प्रकार प्रस्ट्तुत
दकए िाएँगे िैसा बोड डद्वारा समय-समय पर बताया िाए ।”
बबीता रायुडू, कायडपालक जिदेिक
[जिज्ञापि-III/4/असा./341/2023-24]
पाद ठर्प्पण:
1. रतीय प्रजतभूजत और जिजिमय बोडड (जिदेिी पोर्डफोजलयो जििेिक) जिजियम, 2019, मूल जिजियम,
स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2019/36 द्वारा, 23 जसतम्बर, 2019 को भारत के रािपत्र में प्रकाजित हुए
थ।े
2. भारतीय प्रजतभूजत और जिजिमय बोड ड (जिदेिी पोर्डफोजलयो जििेिक) जिजियम, 2019 तत्पश्चात ् -
(1) 19 ददसम्बर 2019 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिदेिी पोर्डफोजलयो जििेिक) (संिोधि)
जिजियम 2019, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2019/44, द्वारा
(2) 7 अप्रैल 2020 को भारतीय प्रजतभूजत और जिजिमय बोड ड (जिदेिी पोर्डफोजलयो जििेिक) (संिोधि) जिजियम
2020, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2020/09, द्वारा
(3) 17 अप्रैल 2020 को भारतीय प्रजतभूजत और जिजिमय बोड ड (रेग्यूलेर्री सैंडबॉक्स) (संिोधि) जिजियम, 2020,
सं. सेबी/एल.ए.डी.-एिआरओ/िीएि/2020/10, द्वारा
(4) 3 अगस्ट्त 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेग्यूलेर्री सडैं बॉक्स) (संिोधि) जिजियम, 2021,
सं. सेबी/एलएडी-एिआरओ/िीएि/2021/30, द्वारा
(5) 3 अगस्ट्त 2021 को भारतीय प्रजतभूजत और जिजिमय बोड ड (जिदेिी पोर्डफोजलयो जििेिक) (संिोधि) जिजियम
2021, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2021/32, द्वारा
(6) 26 अिूबर 2021 को भारतीय प्रजतभूजत और जिजिमय बोड ड (जिदेिी पोर्डफोजलयो जििेिक) (दसू रा संिोधि)
जिजियम 2021, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2021/54, द्वारा
(7) 14 िििरी 2022 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिदेिी पोर्डफोजलयो जििेिक) (संिोधि)
जिजियम 2022, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2022/64, द्वारा[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
(8) 9 ििम्बर, 2022 को भारतीय प्रजतभूजत और जिजिमय बोडड (फीस का भुगताि) जिजियम 2022, स.ं
सेबी/एलएडी-एिआरओ/िीएि/2022/99, द्वारा
(9) 1 4 माचड, 2023 को भारतीय प्रजतभूजत और जिजिमय बोडड (जिदेिी पोर्डफोजलयो जििेिक) (संिोधि) जिजियम
2023, स.ं सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि/2023/128, द्वारा
(10) 4 िुलाई, 2023 को भारतीय प्रजतभूजत और जिजिमय बोडड (जििाद सुलझािे की िैकजल्पक व्यिस्ट्था) (संिोधि)
जिजियम, 2023, सं. सेबी/एलएडी-एिआरओ/िीएि/2023/137, द्वारा
संिोजधत हुए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 10th August 2023
Securities and Exchange Board of India (Foreign Portfolio Investors)
(Second Amendment) Regulations, 2023
No. SEBI/LAD-NRO/GN/2023/143.—In exercise of the powers conferred by sub-section (1) of Section 30
read with sub-section (1) of Section 11, clause (ba) of sub-section (2) of section 11 and sub-sections (1) and (1A) of
Section 12 of the Securities and Exchange Board of India Act, 1992, and under Section 25 of the Depositories Act,
1996, the Board hereby makes the following regulations, to further amend the Securities and Exchange Board of India
(Foreign Portfolio Investors ) Regulations, 2019, namely, –
1. These regulations may be called the Securities and Exchange Board of India (Foreign Portfolio Investors)
(Second Amendment) Regulations, 2023.
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 regulation 4, in clause (f), the words “twenty five percent or more” shall be substituted with the
words and symbol “more than the threshold prescribed under sub-rule (3) of rule 9 of the Prevention
of Money-laundering (Maintenance of Records) Rules, 2005”.
II. In regulation 22, after sub-regulation (5), the following sub-regulations shall be inserted, namely, -
“(6) A foreign portfolio investor that fulfils the criteria specified by the Board from time to time,
shall provide information or documents in relation to the persons with any ownership, economic
interest or control, in the foreign portfolio investor.
(7) The information or documents specified in sub-regulation (6) shall be provided in the manner
as may be specified by the Board from time to time.”
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./341/2023-24]
Footnote:
1. The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019, the Principal
Regulations 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/2019/44.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
(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.
(6) 26th October, 2021 by the Securities and Exchange Board of India (Foreign Portfolio Investors)
(Second Amendment) Regulations, 2021 vide No. SEBI.LAD-NRO/GN/2021/54
(7) 14th January, 2022 by the Securities and Exchange Board of India (Foreign Portfolio Investors)
(Amendment) Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/64
(8) 9th November, 2022 by the Securities and Exchange Board of India (Payment of Fees (Amendment)
Regulations, 2022 vide No. SEBI/LAD-NRO/GN/2022/99
(9) 14th March, 2023, by the Securities and Exchange Board of India (Foreign Portfolio Investors)
(Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/128.
(10) 4th July, 2023, by the Securities and Exchange Board of India (Alternative Dispute Resolution
Mechanism) (Amendment) Regulations, 2023 vide No. SEBI/LAD-NRO/GN/2023/137.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.