Management and advisory services by AMCs to Foreign Portfolio Investors
Summary
This circular permits Asset Management Companies to provide management and advisory services to Foreign Portfolio Investors operating from International Financial Services Centres. It extends this permission to FPIs not previously specified in the 2019 circular, subject to specific investment restrictions. The directive is issued under Section 11(1) of the SEBI Act and Regulation 77 of the Mutual Funds Regulations.
Text
AMCs may provide management and advisory services to FPIs operating from IFSC and regulated by IFSCA falling under the categories specified in SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2019/155 dated December 16, 2019.
AMCs may also provide management and advisory services to FPIs operating from IFSC and regulated by IFSCA, not falling under the categories specified in the 2019 circular, subject to conditions 2.1 and 2.2.
Such FPI shall be allowed to invest in mutual fund schemes other than the schemes in the category of “thematic” as defined in SEBI Circular No. SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 6, 2017.
For investment in equity and equity derivative securities listed on recognized stock exchanges in India, such FPI shall not take contra-position for a period of six months from the date of purchase or sale of such securities.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996.
Source: SecMarx — Management and advisory services by AMCs to Foreign Portfolio Investors. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.