Addendum to the Circular No. CIR/IMD/FIIC/1/2011
Summary
This circular serves as an addendum to SEBI's earlier circular regarding Foreign Institutional Investors and Offshore Derivative Instruments. It mandates that the word 'revised' in paragraph 4 of the previous circular be substituted with 'additional' to reflect a new undertaking requirement. The document clarifies that existing reporting formats already include necessary undertakings and remains effective under Section 11(1) of the SEBI Act.
Text
the word ‘revised’ as mentioned in the paragraph 4 subject line and text may be substituted with the word ‘additional’. Thus paragraph 4 is replaced as follows
The reports shall now be submitted with the following additional undertaking:- “We undertake that the beneficial owner and the person(s) to whom the Offshore Derivative Instrument is issued in compliance with Regulation 15A of SEBI (FII) Regulations. We also undertake that the KYC compliance norms have been followed for the beneficial owner of the Offshore Derivative Instrument”
It may be noted that the undertakings to be submitted by the ODI/PN issuers are already mentioned in the Monthly Summary Report and Annexure A of the reporting format specified in the aforementioned circular.
All other provisions of the circular CIR/IMD/FIIC/1/2011 dated January 17, 2011 remain unchanged.
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
The custodians are requested to bring the contents of this circular to the notice of their FII clients.
Source: SecMarx — Addendum to the Circular No. CIR/IMD/FIIC/1/2011. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.