Foreign portfolio investors (FPI) will get time up to seven working days to furnish information to SEBI regarding any material change in its structure or ownership or control or investor group, any litigations etc. As on date, all such information need to be submitted forthwith.
Securities & Exchange Board of India (SEBI) has notified changes in Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019. These are made effective from the date of publication which is March 14, 2023.
Read also: SEBI gets strict on beneficial owners hiding behind FPIs
Existing regulation says the foreign portfolio investor shall ‘forthwith’ inform the Board (SEBI) and designated depository participant in writing if any information or particulars previously submitted to the Board or designated depository participants are found to be false or misleading, in any material respect; Now the word ‘forthwith’ has been replaced with ‘as soon as possible, but not later than seven working days.’ This means FPI will get some time up to seven days to file any discrepancy in the information.
Another existing regulation prescribes FPI to ‘forthwith’ inform the Board and designated depository participant in writing, if there is any material change in the information, including any direct or indirect change in its structure or ownership or control, previously furnished. Here the word ‘forthwith’ has been replaced with ‘as soon as possible but not later than seven days.’
Similarly, FPIs will be required to inform the Board and the designated depository participant, in case of any penalty, pending litigation or proceedings, findings of inspections or investigations for which action may have been taken or is in the process of being taken by an overseas regulator against it “as soon as possible but not later than seven working days.” At present this has to complied forthwith. FPIs will be required to bring in the notice to the depository participant about any direct or indirect change in structure or common ownership or control withing seven days.
Changes in the regulation has given time up to two working days to depository participants to inform SEBI if any information or particulars previously submitted are found to be false or misleading. Same time line needs to be maintained to furnish any material change in the information submitted earlier and about any penalty, pending litigation or proceedings, findings of inspections or investigations for which action may have been taken or is in the process of being taken by any regulator.
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.