Executive Summary:
The Securities and Exchange Board of India (SEBI) has issued the Fourth Amendment Regulations for Foreign Portfolio Investors (FPI) in 2017. These regulations mandate FPIs to collect a regulatory fee from every subscriber of offshore derivative instruments (ODIs) and remit it to the Board. The regulations came into force on July 20, 2017, and specify that for the three-year block commencing April 1, 2017, FPIs must collect and deposit the fee within two months of the notification date.
Key Points / Main Content:
Regulatory Fee Collection:
* FPIs must collect a regulatory fee from every subscriber of ODIs issued by them.
* The regulatory fee is US$1000 or any other amount specified by the Board from time to time.
* Collected fees must be deposited with the Board via electronic transfer to a designated bank account.
* The fee is to be deposited once every three years.
Timeline for Initial Deposit:
* For the three-year block starting April 1, 2017, FPIs must collect and deposit the regulatory fee within two months from July 20, 2017.
Impact Analysis:
Foreign Portfolio Investors (FPIs):
* Impact: FPIs are required to collect regulatory fees from ODI subscribers and remit them to the SEBI.
* Action Required: FPIs must establish a system for collecting fees from ODI subscribers, ensure timely deposit of the fees to the Board, and comply with the specified timelines.
Offshore Derivative Instrument (ODI) Subscribers:
* Impact: ODI subscribers will be charged a regulatory fee by the FPIs.
* Action Required: ODI subscribers must pay the regulatory fee to the FPIs.
Securities and Exchange Board of India (SEBI):
* Impact: SEBI will receive regulatory fees from FPIs related to ODI subscriptions.
* Action Required: SEBI needs to establish and maintain a designated bank account for receiving the fees, and monitor the collection and deposit of fees by FPIs.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulatory body for securities and commodity market in India.
Securities and Exchange Board of India Act, 1992: The act of the Parliament of India that established the Securities and Exchange Board of India (SEBI).
Depositories Act, 1996: An Act to provide for the establishment of depositories with the objective of ensuring free transferability of securities with speed, accuracy and security by (a) making securities fungible; (b) eliminating the need for movement of scrips; and (c) providing for speedy transfer of securities.
Securities and Exchange Board of India Foreign Portfolio Investors Regulations, 2014: Regulations established by SEBI concerning foreign portfolio investors.
Securities and Exchange Board of India Foreign Portfolio Investors Fourth Amendment Regulations, 2017: The specific amendment to the 2014 regulations that is the subject of this notification.
Foreign Portfolio Investor (FPI): An investor or investment fund investing in a country to which it is foreign.
Offshore Derivative Instrument (ODI): A derivative instrument issued overseas by a Foreign Portfolio Investor (FPI).
Mumbai, Maharashtra: The city where the Securities and Exchange Board of India (SEBI) is headquartered, and the place of notification.
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EXTRAORDINARY
Hkkx III—[k.M 4
PART III—Section 4
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PUBLISHED BY AUTHORITY
la- 289] ubZ fnYyh] c``gLifrokj] tqykbZ 20] 2017@vk"kk<+ 29] 1939
No. 289] NEW DELHI, THURSDAY, JULY 20, 2017/ASADHA 29, 1939
भभभभााााररररततततीीीीयययय (cid:7079)(cid:7079)(cid:7079)(cid:7079)ििििततततभभभभििूूििूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:6981)(cid:6981) (cid:6981)(cid:6981)
अअअअििििधधधधससससचचूूचचूू ननननाााा
मु(cid:7013)बई, 20 tqykbZ, 2017
भभभभााााररररततततीीीीयययय (cid:7079)(cid:7079)(cid:7079)(cid:7079)ििििततततभभभभििूूििूू तततत औऔऔऔरररर ििििववववििििननननममममयययय बबबबोोोोडडडड (cid:6981)(cid:6981) (cid:6981)(cid:6981)
[[[[ििििववववददददशशेेशशेे ीीीी पपपपोोोोटटटट(cid:6981)(cid:6981)फफ(cid:6981)(cid:6981)फफोोोोििििललललययययोोोो ििििववववििििननननधधधधााााननननककककतततताााा (cid:6981)(cid:6981) (cid:6981)(cid:6981)((((ििििननननववववशशेेशशेे कककक))))]]]] ((((चचचचौौौौथथथथाााा ससससशशंंशशंं ोोोोधधधधनननन)))) ििििववववििििननननययययमममम,,,, 2222000011117777
सससस..ंं..ंं ससससबबेेबबेे ीीीी////एएएएलललल. एएएए. डडडडीीीी.-एएएएनननन. आआआआरररर. ओओओओ. ////जजजजीीीी. एएएएनननन. ////2222000011117777-11118888////000011112222.—भारतीय (cid:7079)ितभूित और िविनमय बोड,(cid:6981) भारतीय
(cid:7079)ितभूित और िविनमय बोड (cid:6981) अिधिनयम, 1992 क(cid:7409) धारा 11 क(cid:7409) उप-धारा (1), धारा 11 क(cid:7409) उप-धारा (2) के खडं
(खक) तथा धारा 12 क(cid:7409) उप-धारा (1) एवं (1क) के साथ प(cid:7407)ठत धारा 30 क(cid:7409) उप-धारा (1) (cid:7367)ारा, और िन(cid:6979)ेपागार
अिधिनयम, 1996 क(cid:7409) धारा 25 के अधीन, (cid:7079)द(cid:7275) शि(cid:7334)य(cid:7298) का (cid:7079)योग करते (cid:7263)ए एत(cid:7375)ारा भारतीय (cid:7079)ितभूित और
िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता(cid:6981) (िनवेशक)] िविनयम, 2014 का और संशोधन करने के िलए
िन(cid:7388)िलिखत िविनयम बनाता ह,ै अथा(cid:6981)त,् —
1.(cid:32) इन िविनयम(cid:7298) को भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता (cid:6981) (िनवेशक)]
(चौथा संशोधन) िविनयम, 2017 कहा जा सकेगा ।
2.(cid:32) वे राजप(cid:7074) म(cid:7286) उनके (cid:7079)काशन क(cid:7409) तारीख को (cid:7079)वृ(cid:7275) ह(cid:7298)गे ।
3.(cid:32) भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता(cid:6981) (िनवेशक)] िविनयम, 2014
म(cid:7286), -
क)(cid:32) िविनयम 22 म(cid:7286), उप-िविनयम (4) के प(cid:7391)ात्, िन(cid:7388)िलिखत नया उप-िविनयम अंतः(cid:7021)थािपत (cid:7408)कया
जाएगा, अथा(cid:6981)त,् —
4413 GI/2017 (1)(cid:32)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
“(5) िवदशे ी पोट(cid:6981)फोिलयो िनवेशक, उसके (cid:7367)ारा िनग(cid:6981)िमत (जारी/इ(cid:7019)यू) (cid:7408)कए गए अपतटीय (cid:7390)ु(cid:7004)प(cid:7382)ी
िलखत (ऑफशोर ड(cid:7407)े रवे(cid:7407)टव इं(cid:7021)(cid:7215)म(cid:7286)ट) के (cid:7079)(cid:7004)येक अिभदाता (स(cid:7011)(cid:7021)(cid:7059)ाइबर) से, दसू री अनुसूची के भाग ग
म(cid:7286) यथा िनधा(cid:6981)(cid:7407)रत िविनयामक फ(cid:7409)स (रे(cid:6991)यूलेटरी फ(cid:7409)स) एक(cid:7074) करेगा और वह फ(cid:7409)स बोड (cid:6981) के पास जमा
करेगा ।”
ख)(cid:32) दसू री अनुसूची म(cid:7286), भाग ख के प(cid:7391)ात्, िन(cid:7388)िलिखत नया भाग अंतः(cid:7021)थािपत (cid:7408)कया जाएगा, अथा(cid:6981)त,् —
“भाग ग
अपतटीय (cid:7390)ु(cid:7004)प(cid:7382)ी िलखत (ऑफशोर ड(cid:7407)ेरवे(cid:7407)टव इं(cid:7021)(cid:7215)म(cid:7286)ट) के अिभदाता(cid:7312) (स(cid:7011)(cid:7021)(cid:7059)ाइबस(cid:6981)) स ेिवदशे ी
पोट(cid:6981)फोिलयो िनवेशक (cid:7367)ारा िविनयामक फ(cid:7409)स एक(cid:7074) (cid:7408)कया जाना
[ िविनयम 22 का उप-िविनयम (5) दखे (cid:7286) ]
िविनयामक फ(cid:7409)स
(1)(cid:32) िवदशे ी पोट(cid:6981)फोिलयो िनवेशक, उसके (cid:7367)ारा िनग(cid:6981)िमत (जारी/इ(cid:7019)यू) (cid:7408)कए गए अपतटीय (cid:7390)ु(cid:7004)प(cid:7382)ी
िलखत (ऑफशोर ड(cid:7407)े रवे(cid:7407)टव इं(cid:7021)(cid:7215)म(cid:7286)ट) के (cid:7079)(cid:7004)येक अिभदाता (स(cid:7011)(cid:7021)(cid:7059)ाइबर) स,े 1000 अमरीक(cid:7409)
डॉलर क(cid:7409) रकम या कोई अ(cid:7008)य रकम, जो बोड (cid:6981) (cid:7367)ारा समय-समय पर िनधा(cid:6981)(cid:7407)रत क(cid:7409) जाए,
िविनयामक फ(cid:7409)स के (cid:7272)प म(cid:7286) एक(cid:7074) करेगा और वह फ(cid:7409)स बोड (cid:6981) के अिभिहत ब(cid:7289)क खाते (डिे स(cid:7336)ेटेड
ब(cid:7289)क अकाउंट) म(cid:7286) इले(cid:6989)(cid:7069)ॉिनक अंतरण ((cid:7069)ांसफर) के मा(cid:7007)यम स े बोड(cid:6981) के पास जमा करेगा ।
(2)(cid:32) िविनयामक फ(cid:7409)स (cid:7079)(cid:7004)येक तीन वष(cid:6981) म(cid:7286) एक बार जमा क(cid:7409) जाएगी :
परंतु यह (cid:7408)क 1 अ(cid:7079)ैल, 2017 से शु(cid:7272) होन े वाले तीन वष(cid:7300) के (cid:7011)लॉक के िलए, िवदशे ी
पोट(cid:6981)फोिलयो िनवेशक भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता (cid:6981)
(िनवेशक)] (चौथा संशोधन) िविनयम, 2017 के अिधसूिचत होन े क(cid:7409) तारीख से दो महीन(cid:7298) के भीतर
िविनयामक फ(cid:7409)स एक(cid:7074) करेगा और जमा करेगा ।”
अजय (cid:7004)यागी, अ(cid:7007)य(cid:6979)
[िव(cid:6980)ापन-III/4/असा./153/17]
पपपपाााादददद (cid:7407)(cid:7407)(cid:7407)(cid:7407)टटटट(cid:7009)(cid:7009)(cid:7009)(cid:7009)पपपपणणणण ::::
1.(cid:32) भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता(cid:6981) (िनवशे क)] िविनयम, 2014,
सं. एल.ए.डी.एन.आर.ओ./जी.एन./2013-14/36/12 (cid:7367)ारा, 7 जनवरी, 2014 को भारत के राजप(cid:7074) म(cid:7286)
(cid:7079)कािशत (cid:7263)ए थे ।
2.(cid:32) भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता(cid:6981) (िनवशे क)] िविनयम, 2014
त(cid:7004)प(cid:7391)ात् :
(क) 8 जुलाई, 2016 को भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता(cid:6981)
(िनवेशक)] (संशोधन) िविनयम, 2016, अिधसूचना सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-
17/009, (cid:7367)ारा¹Hkkx IIIµ[k.M 4º Hkkjr dk jkti=k % vlk/kj.k 3
(ख) 12 जनवरी, 2017 को भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता (cid:6981)
(िनवेशक)] (संशोधन) िविनयम, 2017, अिधसूचना सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-
17/018, (cid:7367)ारा
(ग) 27 फरवरी, 2017 को भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता (cid:6981)
(िनवेशक)] (दसू रा संशोधन) िविनयम, 2017, अिधसूचना सं. सेबी/एल.ए.डी. एन.आर.ओ./ जी.एन./
2016-17/035, (cid:7367)ारा
(घ) 6 माच(cid:6981), 2017 को भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) (फ(cid:7409)स का भुगतान और भुगतान का मा(cid:7007)यम)
(संशोधन) िविनयम, 2017, अिधसूचना स.ं सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/037
(तारीख 29 माच(cid:6981), 2017 क(cid:7409) अिधसूचना सं. सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/038 के
साथ प(cid:7407)ठत), (cid:7367)ारा
(ङ) 29 मई, 2017 को भारतीय (cid:7079)ितभूित और िविनमय बोड (cid:6981) [िवदशे ी पोट(cid:6981)फोिलयो िविनधानकता (cid:6981) (िनवेशक)]
(तीसरा संशोधन) िविनयम, 2017, अिधसूचना स.ं सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2017-
18/004, (cid:7367)ारा
संशोिधत (cid:7263)ए थे ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 20th July, 2017
SECURITIES AND EXCHANGE BOARD OF INDIA (FOREIGN PORTFOLIO
INVESTORS) (FOURTH AMENDMENT) REGULATIONS, 2017
No. SEBI/LAD-NRO/GN/2017-18/012.—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 section 25 of the
Depositories Act, 1996, the Securities and Exchange Board of India hereby makes the following regulations to
further amend the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014,
namely,—
1.(cid:32) These regulations may be called the Securities and Exchange Board of India (Foreign Portfolio
Investors) (Fourth Amendment) Regulations, 2017.
2.(cid:32) They shall come into force on the date of their publication in the Official Gazette.
3.(cid:32) In the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, -
a) in regulation 22, after sub-regulation (4) the following new sub-regulation shall be inserted,
namely,—
“(5) A foreign portfolio investor shall collect regulatory fee, as specified in Part C of the
Second Schedule, from every subscriber of offshore derivative instrument issued by it and
deposit the same with the Board.”
b) in the Second Schedule, after Part B, the following new Part shall be inserted, namely,—4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC. 4]
“PART C
(cid:32) COLLECTION OF REGULATORY FEES BY FOREIGN PORTFOLIO INVESTOR
FROM ODI SUBSCRIBERS
(cid:93)(cid:32)(cid:111)(cid:110)(cid:32)(cid:50)(cid:50)(cid:116)(cid:101)(cid:105)(cid:103)(cid:82)(cid:117)(cid:108)(cid:97)(cid:32)(cid:111)(cid:102)(cid:32)(cid:53)(cid:41)(cid:105)(cid:108)(cid:111)(cid:110)(cid:32)(cid:40)(cid:97)(cid:116)(cid:114)(cid:101)(cid:115)(cid:103)(cid:117)(cid:117)(cid:98)(cid:45)(cid:91)(cid:101)(cid:101)(cid:32)(cid:83)
(cid:32) (cid:32)(cid:101)(cid:101)(cid:116)(cid:111)(cid:101)(cid:114)(cid:108)(cid:103)(cid:117)(cid:121)(cid:82)(cid:32)(cid:70)(cid:97)
(1)(cid:32) A foreign portfolio investor shall collect the regulatory fee of US $ 1000 or any other
amount, as may be specified by the Board from time to time, from every subscriber of
offshore derivative instrument issued by it and deposit the same with the Board by way
of electronic transfer in the designated bank account of the Board.
(2)(cid:32) The regulatory fee shall be deposited once every three years .
Provided that for the block of three years beginning April 1, 2017, a foreign portfolio
investor shall collect and deposit the regulatory fee within two months from the date of
notification of the Securities and Exchange Board of India (Foreign Portfolio Investors)
(Fourth Amendment) Regulations, 2017. ’’
AJAY TYAGI, Chairman
[ADVT.-III/4/Exty./153/17]
Footnote:
1.(cid:32) The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014 were
published in the Gazette of India on 7th January, 2014 vide No. LAD-NRO/GN/2013-14/36/12.
2.(cid:32) The Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, were
subsequently amended on:
(a)(cid:32) July 8, 2016 by the Securities and Exchange Board of India (Foreign Portfolio Investors)
(Amendment) Regulations, 2016 vide notification No. SEBI/LAD-NRO/GN/2016-17/009;
(b)(cid:32) January 12, 2017 by the Securities and Exchange Board of India (Foreign Portfolio Investors)
(Amendment) Regulations, 2017 vide notification No. SEBI/LAD-NRO/GN/2016-17/018;
(c)(cid:32) February 27, 2017 by the Securities and Exchange Board of India (Foreign Portfolio Investors)
(Second Amendment) Regulations, 2017 vide notification no. SEBI/LAD/NRO/GN/2016-17/035;
(d)(cid:32) March 6, 2017 by the Securities and Exchange Board of India (Payment of Fees and Mode of
Payment) (Amendment) Regulations, 2017 vide notification No. SEBI/LAD/NRO/GN/2016-
17/037 read with notification No. SEBI/LAD/NRO/GN/2016-17/38, dated March 29, 2017;
(e)(cid:32) May 29, 2017 by the Securities and Exchange Board of India (Foreign Portfolio Investors) (Third
Amendment) Regulations, 2017 vide notification No. SEBI/LAD/NRO/GN/2017-18/04.
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.