 |
|
Untitled Document
|
|
|
|
|
login
|
|
|
|
|
|
|
|
|
 |
Presentation
|
|
|
(1) Eligibilty Criteria
- The applicant is a person not resident in India;
- The applicant is resident of a country whose securities market regulator is a signatory to International Organization of Securities Commission’s Multilateral Memorandum of Understanding (Appendix A Signatories) or a signatory to bilateral Memorandum of Understanding with the Board;
http://www.iosco.org/library/index.cfm?section=mou_siglist
http://www.sebi.gov.in/cms/sebi_data/attachdocs/MoUSebi.pdf
- The applicant being a bank, is a resident of a country whose central bank is a member of Bank for International Settlements;
http://www.bis.org/about/orggov.htm
- The applicant is not resident in a country identified in the public statement of Financial Action Task Force as :
- A jurisdiction having a strategic Anti-Money Laundering or Combating the Financing of Terrorism deficiencies to which counter measures apply;
or
- A jurisdiction that has not made sufficient progress in addressing the deficiencies or has not committed to an action plan developed with the Financial Action Task Force to address the deficiencies;
http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions
- The applicant is not a non-resident Indian;
- The applicant is legally permitted to invest in securities outside the country of its incorporation or establishment or place of business;
- The applicant is authorized by its Memorandum of Association and Articles of Association or equivalent document(s) or the agreement to invest on its own behalf or on behalf of its clients;
- The applicant has sufficient experience, good track record, is professionally competent, financially sound and has a generally good reputation of fairness and integrity;
- The grant of certificate to the applicant is in the interest of the development of the securities market;
- The applicant is a fit and proper person based on the criteria specified in Schedule II of the Securities and Exchange Board of India (Intermediaries) Regulations, 2008; and
- Any other criteria specified by SEBI from time to time
|
|
|
(2) Expected list of eligible jurisdictions (Subject to validation by a SEBI circular)
 |
| Albania |
Brazil |
Denmark |
| Andorra |
British Virgin Islands [UK] |
Egypt |
| Australia |
Bulgaria |
El Salvador |
| Austria |
Burkina Faso (WAEMU) |
Estonia |
| Bahamas |
Cayman Islands [UK] |
Finland |
| Bahrain |
China |
France |
| Bangladesh |
Colombia |
Germany |
| Belgium |
Cote D’Ivoire (WAEMU) |
Gibraltar [UK] |
| Benin (WAEMU) |
Croatia |
Greece |
| Bermuda [UK] |
Cyprus |
Guernsey [UK] |
| Bosnia and Herzegovina |
Czech Republic |
Guinea-Bissau (WAEMU) |
|
|
|
|
| Hong Kong [PRC] |
Latvia |
Mauritius |
| Hungary |
Liechtenstein |
Mexico |
| Iceland |
Lithuania |
Montenegro |
| Ireland |
Luxembourg |
Morocco |
| Isle of Man [UK] |
Macedonia |
Netherlands |
| Israel |
Malawi |
New Zealand |
| Italy |
Malaysia |
Niger (WAEMU) |
| Japan |
Maldives |
Norway |
| Jersey [UK] |
Mali (WAEMU) |
Oman |
| Jordan |
Malta |
Palestine |
| Kenya |
Mauritania |
Peru |
|
|
|
|
| Poland |
South Africa |
Trinidad and Tobago |
| Portugal |
South Korea |
Tunisia |
| Qatar |
Spain |
United Arab Emirates |
| Romania |
Sri Lanka |
United Kingdom |
| Russia |
Srpska |
United States |
| Saudi Arabia |
Sweden |
Uruguay |
| Senegal (WAEMU) |
Switzerland |
Vietnam |
| Serbia |
Taiwan [ROC] |
|
| Singapore |
Tanzania |
|
| Slovakia |
Thailand |
|
| Slovenia |
Togo (WAEMU) |
|
|
|
|
If a Bank, eligible if from :
|
| Australia |
France |
Malaysia |
South Africa |
| Austria |
Germany |
Mexico |
South Korea |
| Belgium |
Greece |
Netherlands |
Sweden |
| Bosnia and Herzegovina |
Hong Kong [PRC] |
New Zealand |
Switzerland |
| Hungary |
Norway |
Thailand |
| Brazil |
Iceland |
Poland |
United Arab Emirates |
| Bulgaria |
Ireland |
Portugal |
| China |
Israel |
Romania |
United Kingdom |
| Colombia |
Italy |
Russia |
United States |
| Croatia |
Japan |
Saudi Arabia |
|
| Czech Republic |
Latvia |
Serbia |
|
| Denmark |
Lithuania |
Singapore |
|
| Estonia |
Luxembourg |
Slovakia |
|
| Finland |
Macedonia |
Slovenia |
|
|
|
|
(3) Categories of FPIs
|
I
|
shall include Government and Government related investors such as central banks, Governmental agencies, sovereign wealth funds and international or multilateral organizations or agencies
|
| II |
Shall include: |
|
(i) |
appropriately regulated broad based funds such as mutual funds, investment trusts, insurance / reinsurance companies |
|
(ii) |
appropriately regulated persons such as banks, asset management companies, investment managers / advisors, portfolio managers |
|
(iii) |
broad based funds that are not appropriately regulated but whose investment manager is appropriately regulated : |
|
|
|
Provided that the investment manager of such broad based fund is itself registered as Category II foreign portfolio investor |
|
|
|
Provided further that the investment manager undertakes that it shall be responsible and liable for all acts of commission and omission of all its underlying broad based funds and other deeds and things done by such broad based funds under these regulations |
|
(iv) |
university funds and pension funds |
|
(v) |
university related endowments already registered with the Board as foreign institutional investors or sub-accounts |
| III |
shall include all others not eligible under Category I and II foreign portfolio investors such as endowments, charitable societies, charitable trusts, foundations, corporate bodies, trusts, individuals and family offices |
|
|
(4) Permitted Investments
| (a) |
Securities in the primary and secondary markets including shares, debentures and warrants of companies, listed or to be listed on a recognized stock exchange in India |
| (b) |
Units of schemes floated by domestic mutual funds, whether listed on a recognized stock exchange or not |
| (c) |
Units of schemes floated by a collective investment scheme |
| (d) |
Derivatives traded on a recognized stock exchange |
| (e) |
Dated government securities having residual maturity of one year and above |
| (f) |
Commercial papers issued by an Indian company |
| (g) |
Rupee denominated credit enhanced bonds |
| (h) |
Security receipts issued by asset reconstruction companies |
| (i) |
Perpetual debt instruments and debt capital instruments, as specified by the Reserve Bank of India from time to time |
| (j) |
Listed and unlisted non-convertible debentures/bonds issued by an Indian company in the infrastructure sector, where ‘infrastructure’ is defined in terms of the extant External Commercial Borrowings (ECB) guidelines |
| (k) |
Non-convertible debentures or bonds issued by Non-Banking Financial Companies categorized as ‘Infrastructure Finance Companies’(IFCs) by the Reserve Bank of India |
| (l) |
Rupee denominated bonds or units issued by infrastructure debt funds |
| (m) |
Indian depository receipts |
| (n) |
Such other instruments specified by the Board from time to time
|
|
|
(5) Addiional Condiions
| (a) |
In respect of investments in the secondary market, the following additional conditions shall apply: |
|
(i) |
A FPI shall transact in the securities in India only on the basis of taking and giving delivery of securities purchased or sold |
|
(ii) |
Nothing contained in clause (a) shall apply to : |
|
|
- |
any transactions in derivatives on a recognized stock exchange |
|
|
- |
short selling transactions in accordance with the framework specified by SEBI |
|
|
- |
any transaction in securities pursuant to an agreement entered into with the merchant banker in the process of market making or subscribing to unsubscribed portion of the issue in accordance with Chapter XB of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 |
|
|
- |
any other transaction specified by SEBI |
|
(iii) |
No transaction on the stock exchange shall be carried forward |
|
(iv) |
The transaction of business in securities by a FPI shall be only through stock brokers registered by SEBI |
|
(v) |
Nothing contained in clause (d) of this sub-regulation shall apply to : |
|
|
- |
transactions in Government securities and such other securities falling under the purview of the RRBI which shall be carried out in the manner specified by RBI |
|
|
- |
sale of securities in response to a letter of offer sent by an acquirer in accordance with the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 |
|
|
- |
sale of securities in response to an offer made by any promoter or acquirer in accordance with SEBI (Delisting of Equity shares) Regulations, 2009 |
|
|
- |
sale of securities, in accordance with the SEBI (Buy-back of securities) Regulations, 1998 |
|
|
- |
divestment of securities in response to an offer by Indian Companies in accordance with Operative Guidelines for Disinvestment of Shares by Indian Companies in the overseas market through issue of American Depository Receipts or Global Depository Receipts as notified by the GOI and directions issued by RBI from time to time |
|
|
- |
any bid for, or acquisition of, securities in response to an offer for disinvestment of shares made by the Central Government or any State Government |
|
|
- |
any transaction in securities pursuant to an agreement entered into with merchant banker in the process of market making or subscribing to unsubscribed portion of the issue in accordance with Chapter XB of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 |
|
|
- |
any other transaction specified by the Board |
|
(vi) |
A FPI shall hold, deliver or cause to be delivered securities only in dematerialized form : |
|
|
Provided that any shares held in non-dematerialized form, before the commencement of these regulations, can be held in non-dematerialized form, if such shares cannot be dematerialized |
| (b) |
In respect of investments in the debt securities, the FPI shall also comply with terms, conditions or directions, specified or issued by SEBI or RBI, from time to time, in addition to other conditions specified in these Regulations
|
| (c) |
Unless otherwise approved by the SEBI, securities shall be registered in the name of the FPI as a beneficial owner for the purposes of the Depositories Act, 1996 |
| (d) |
The purchase of equity shares of each company by a single FPI or an investor group shall be below ten percent of the total issued capital of the company |
| (e) |
The investment by the FPI shall also be subject to such other conditions and restrictions as may be specified by the GOI from time to time |
| (f) |
In cases where the GOI enters into agreements or treaties with other sovereign Governments and where such agreements or treaties specifically recognize certain entities to be distinct and separate, SEBI may, during the validity of such agreements or treaties, recognize them as such, subject to conditions as may be specified by it |
| (g) |
A FPI may lend or borrow securities in accordance with the framework specified by SEBI in this regard |
|
|
(6) ODI issuance
| (a) |
No FPI may issue, subscribe to or otherwise deal in Offshore Derivative Instruments (ODIs), directly or indirectly, unless the following conditions are satisfied : |
|
(i) |
such ODIs are issued only to persons who are regulated by an appropriate foreign regulatory authority |
|
(ii) |
such ODIs are issued after compliance with ‘know your client’ norms |
|
Provided that those unregulated broad based funds, which are classified as Category II FPI by virtue of their investment manager being appropriately regulated shall not issue, subscribe or otherwise deal in ODIs directly or indirectly Provided further that no Category III FPI shall issue, subscribe to or otherwise deal in ODIs directly or indirectly |
| (b) |
A FPI shall ensure that further issue or transfer of any ODIs issued by or on behalf of it is made only to persons who are regulated by an appropriate foreign regulatory authority |
| (c) |
FPIs shall fully disclose to SEBI any information concerning the terms of and parties to ODIs such as participatory notes, equity linked notes or any other such instruments, by whatever names they are called, entered into by it relating to any securities listed or proposed to be listed in any stock exchange in India, as and when and in such form as SEBI may specify |
| (d) |
Any ODIs issued under the SEBI (Foreign Institutional Investors) Regulations, 1995 before commencement of these regulations shall be deemed to have been issued under the corresponding provision of these regulations |
|
|
(7) Clubbing of Investments
|
|
The clubbing of investment limit of FPIs is based on common Ultimate Beneficial Ownership (UBO). In case, same investor / same set of end investors are constituents of two or more FPIs and such investor(s) have a beneficial ownership of more than 50% in those FPIs, the investment limit of such FPIs shall be clubbed at the threshold prescribed for a single FPI. All such FPIs will be treated as forming part of an investor group
|
|
(8) Position Limits
|
| |
Individually |
Same Group |
All FPIs Cumulatively |
| Equity (Paid-up Capital) |
Below 10% |
Below 10% |
Upto 24% |
| Convertible Debentures (Paid-up Value of each Series) |
Below 10% |
Below 10% |
Upto 24% |
| Perpetual Debt Instruments eligible for inclusion as Tier I and Debt Capital Instruments as upper Tier II issued by Banks in India |
Below 10% |
Below 10% |
Upto 24% |
| Government Securities |
USD 30 Bn |
| Corporate Debt |
USD 51 Bn
(incl Commercial Paper upto USD 2 Bn) |
| Security Receipts issued by Asset Reconstruction Companies |
Upto 74% of the paid up value of each tranche |
|
|
(9) Permitted Collaterals towards Margin requirement
- Cash (Non Interest Bearing)
- Corporate Bonds
- Government Securities
- Foreign Sovereign Securities
|
|
(10) Registration Fees
|
| Conversions |
FII |
USD 1000
on or before expiry of FII registration |
| SAC |
USD 1000
on or before expiry of SAC registration |
| QFI |
Nil; only fees as per New Registration |
| New Registrations |
Category I |
Nil |
|
Where many FPIs have common beneficial owners, fees for only one FPI under Cat I shall be waived. Others shall pay as per Cat II (except where beneficial owner is a International / Multilateral Agency) |
| Category II |
USD 3000 for every block of 3 years |
| Category III |
USD 300 for every block of 3 years |
| Note |
International / Multilateral Agencies such as World Bank and other institutions established overseas for providing aid and having been granted privileges and immunities by the Indian Government have been exempted from paying Conversion and / or Registration Fees |
|
|
|
|
Top |
|
|
|
|
|
