Guidelines pertaining to Surrender of FPI Registration
Summary
This circular establishes uniform guidelines for Foreign Portfolio Investors (FPIs) to surrender their registration certificates. It mandates that Designated Depository Participants (DDPs) verify specific conditions before applying for a No Objection Certificate from SEBI. Furthermore, DDPs are required to close accounts and deactivate codes within ten working days of receiving the NOC.
Text
any FPI (‘applicant’) desirous of surrendering the certificate of registration may request for such surrender to the DDP.
In order to have a uniform market practice for processing of such surrender requests, DDPs shall adhere to the following additional guidelines:
While making an application to SEBI for seeking “No Objection Certificate” (NOC) for surrender, the DDP shall confirm the following with respect to the FPI: i) Accounts held by the applicant in the capacity of FPI have NIL balance and are blocked for further transactions. Further, the CP code of the FPI is also blocked. ii) There are no dues/ fees pending towards SEBI. iii) There are no actions/ proceedings pending against the said applicant.
DDP shall ensure that: i) all the accounts (including bank account and securities account) held by the applicant in the capacity of FPI are closed; and ii) the CP code is deactivated within 10 working days from the date of receipt of NOC from SEBI.
This circular shall come into force with immediate effect.
Custodians and DDPs are advised to bring the provisions of this circular to the notice of their clients.
This circular is issued in exercise of the powers conferred by Section 11(1) of Securities and Exchange Board of India Act, 1992.
Source: SecMarx — Guidelines pertaining to Surrender of FPI Registration. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.