Foreign investments in infrastructure companies in securities markets
Summary
This circular clarifies the definition of 'secondary market' for Foreign Institutional Investors (FIIs) investing in infrastructure companies. It distinguishes between listed and unlisted exchanges, permitting off-exchange transactions for unlisted entities while requiring exchange-based transactions for listed ones. The directive is issued under Section 11(1) of the SEBI Act to ensure compliance by stock exchanges, depositories, and custodians.
Text
the words ‘secondary market’ as mentioned in the said clause shall mean the following - “In respect of exchanges that are not listed, FIIs purchase of shares of such exchanges can be through transactions outside of the exchange provided it is not an initial allotment. However, if the exchange is listed, transactions by FIIs should be done through the exchange.”
This circular is being issued in exercise of the powers conferred by Section 11 (1) of the Securities and Exchange Board of India Act, 1992, for information and necessary compliance by the concerned entities.
Source: SecMarx — Foreign investments in infrastructure companies in securities markets. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.