**Summary:**
This circular, reference number SEBI/HO/IMD/FPIC/CIR/P/2020/177, issued by the Securities and Exchange Board of India (SEBI) on September 21, 2020, addresses the write-off of shares held by Foreign Portfolio Investors (FPIs). It amends the operational guidelines outlined in circular number IMD/FPIC/CIR/P/2019/124 dated November 05, 2019.
The key change pertains to the eligibility criteria for share write-offs. Previously, FPIs surrendering their registration could only write off shares of unlisted, illiquid, suspended, or delisted companies. This circular now permits FPIs to write off shares of *all* companies that they are unable to sell, provided they comply with the process detailed in paragraph 17 of Part C of the aforementioned operational guidelines.
This directive 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. Custodians are requested to inform their FPI clients about the contents of this circular.
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 investing in financial assets of a country
Designated Depository Participants: Participants authorized to handle depository activities.
Securities and Exchange Board of India: Regulatory body for the securities market in India.
SEBI Foreign Portfolio Investors Regulations 2019: Regulations governing foreign portfolio investments in India.
Securities and Exchange Board of India Act, 1992: Law establishing and defining the powers of SEBI.
NSDL: National Securities Depository Limited, an Indian central securities depository.
CDSL: Central Depository Services Limited, an Indian central securities depository.
AMIT TANDON: General Manager at SEBI who issued the circular
CIRCULAR
SEBI/HO/IMD/FPI&C/CIR/P/2020/177
September 21, 2020
To,
1. Foreign Portfolio Investors ("FPIs")
2. Designated Depository Participants ("DDPs") and 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)
Dear Sir / Madam,
Subject: Write-off of shares held by FPIs
1. SEBI, vide circular number IMD/FPI&C/CIR/P/2019/124 dated November 05, 2019,
had issued an Operational Guidelines for FPIs and DDPs under SEBI (Foreign
Portfolio Investors), Regulations 2019.
2. In the said Operational Guidelines, write-off of securities held by FPIs who wish to
surrender their registration was permitted only in respect of shares of companies
which are unlisted/illiquid/suspended/delisted. However, in view of the requests
received from various stake holders, it has been decided to permit said FPIs to write-
off shares of all companies which they are unable to sell. In this regard, the process
detailed at para 17 of Part C of the said Operational Guidelines shall be complied with.
3. This circular is issued in exercise of powers conferred under Section 11 (1) of the
Securities and Exchange Board of India Act, 1992.
4. A copy of this circular is available at the web page “Circulars” on our website
www.sebi.gov.in. Custodians are requested to bring the contents of this circular to the
notice of their FPI clients.
Yours faithfully,
AMIT TANDON
General Manager
Tel No.: 022-26449373
E-mail: amitt@sebi.gov.in
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