Guidelines for participation/functioning of Eligible Foreign Investors (EFIs) and FPIs in IFSC - Amendment
Summary
This SEBI circular amends the guidelines for Eligible Foreign Investors and Foreign Portfolio Investors participating in the International Financial Services Centre. It replaces Clause 2 c) of a previous circular to allow trading members to conduct or rely on bank-performed due diligence for unregistered EFIs. The amendment is issued under Section 11(1) of the SEBI Act, 1992.
Text
Based on the discussions with various market participants, it has been decided to replace Clause 2 c) of the aforesaid circular with the following: “In case of participation of an EFI, not registered with SEBI as an FPI, but desirous of operating in IFSC, a trading member of the recognized stock exchange in IFSC may carry out the due diligence on its own or it may rely upon the due diligence carried out by a bank, which is permitted by RBI to operate in IFSC, during the account opening process of an EFI”.
This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Guidelines for participation/functioning of Eligible Foreign Investors (EFIs) and FPIs in IFSC - Amendment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.