**Summary:**
SEBI Circular SEBI/HO/FPI/IC/CIR/P/2020/162, dated August 31, 2020, addresses the temporary relaxation in processing Foreign Portfolio Investor (FPI) documents due to the ongoing COVID-19 pandemic. This circular extends the relaxations previously granted under Circular No. SEBI/HO/FPI/IC/CIR/P/2020/056 dated March 30, 2020, and further extended by Circular No. SEBI/HO/FPI/IC/CIR/P/2020/104 dated June 23, 2020, until August 31, 2020.
Specifically, the August 31, 2020 circular provides continued relaxations for entities from jurisdictions still under lockdown due to COVID-19. These relaxations will remain in effect for entities from those jurisdictions until the lockdown is lifted. Applications already in transit will be processed according to the provisions of the March 30, 2020 circular. The relaxations outlined in the March 30, 2020 circular are not applicable to entities from jurisdictions where lockdowns have already been lifted. All other terms and conditions specified in the March 30, 2020 circular remain unchanged.
This circular is issued under the authority of Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Sub-rule (4)(i) of Rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, to protect investor interests, promote market development, and regulate the securities market. The circular is available on the SEBI website. Designated Depository Participants (DDPs) and Custodians are requested to inform their FPI clients about the contents of this circular.
For further information, contact Achal Singh, General Manager, at 022-26449619 or achals@sebi.gov.in.
Key Entities Referenced
Foreign Portfolio Investors: Refers to investors investing in financial assets of a country.
Designated Depository Participants: Participants authorized to provide depository services to Foreign Portfolio Investors
Securities and Exchange Board of India: Regulatory body for the securities market in India.
COVID19: The global pandemic that caused widespread lockdowns and disruptions, leading to the relaxations discussed in the circular.
Circular No. SEBIHOFPICCIRP2020056 dated March 30, 2020: A previous circular issued by SEBI providing temporary relaxations for FPIs due to COVID-19.
Circular No. SEBIHOFPICCIRP2020104 dated June 23, 2020: A circular extending the relaxations provided in the earlier circular.
Securities and Exchange Board of India Act, 1992: The act that established the Securities and Exchange Board of India and defines its powers and functions.
Prevention of Moneylaundering Maintenance of Records Rules, 2005: Rules pertaining to the prevention of money laundering and the maintenance of records.
CIRCULAR
SEBI/HO/FPI&C/CIR/P/2020/162
August 31, 2020
To,
1. All Foreign Portfolio Investors ("FPIs") through their Designated Depository
Participants ("DDPs")/ Custodian of Securities.
2. Designated Depository Participants ("DDPs")/ Custodians.
3. All Recognized Stock Exchanges/ Clearing Corporations
4. All recognized Stock Exchanges and Clearing Corporations in International
Financial Services Centres
5. The Depositories (NSDL and CDSL)
6. Stock Brokers through Recognized Stock Exchanges
7. Depository Participants through Depositories
8. KYC Registrations Agencies (KRAs)
Dear Sir / Madam,
Subject: Temporary relaxation in processing of documents pertaining to FPIs due
to COVID-19
1. SEBI vide Circular No. SEBI/HO/FPI&C/CIR/P/2020/056 dated March 30, 2020 had
prescribed temporary relaxation in processing of documents pertaining to FPIs due to
COVID-19. Further, vide Circular No. SEBI/HO/FPI&C/CIR/P/2020/104 dated June
23, 2020, the temporary relaxations were extended till August 31, 2020.
2. It is understood that while lockdown has been lifted in many jurisdictions, certain
jurisdictions continue to be under lockdown in view of the prevailing situation due to
COVID-19 pandemic.
3. In view of the representations received from various stakeholders, it has been decided
that for the entities from jurisdictions which are still under lockdown, the temporary
relaxations shall be extended to the entities from such jurisdictions till the time
lockdown is lifted from such jurisdictions. However, in-transit applications shall be
processed on the basis of provisions of aforesaid circular dated March 30, 2020.
4. It may be noted that for the entities from jurisdictions where lockdown has already
been lifted, the relaxation provided under the aforesaid circular dated March 30, 2020
shall not be applicable.
5. All other terms and conditions specified in the aforesaid circular dated March 30, 2020
shall remain unchanged.
6. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 and Sub-rule 14(i) of Rule 9 of the
Prevention of Money-laundering (Maintenance of Records) Rules, 2005 to protect the
interests of investors in securities and to promote the development of, and to regulate
the securities market.7. A copy of this circular is available at the web page “Circulars” on our website
www.sebi.gov.in.
8. DDPs & Custodians are requested to bring the contents of this circular to the notice
of their FPI clients.
Yours faithfully,
ACHAL SINGH
General Manager
Tel No.: 022-26449619
achals@sebi.gov.in