Declaration and Undertaking regarding PCC, MCV or equivalent structure by FIIs
Summary
This circular clarifies the conditions under which Foreign Institutional Investors are exempt from being treated as having an opaque structure. Applicants must be regulated in their home jurisdiction, satisfy broad-based criteria for each fund, and provide beneficial owner information upon request by SEBI. Custodians are instructed to notify their FII clients of these compliance requirements.
Text
If any applicant is required by its regulator or under any law to ring fence its assets and liabilities from other funds/ sub funds, such applicant shall not be treated as having opaque structure, provided: a) the applicant is regulated in its home jurisdiction b) each fund/ sub fund in the applicant satisfies broad based criteria, and c) the applicant gives an undertaking to provide information regarding its beneficial owners as and when SEBI seeks this information.
The custodians are requested to bring the contents of this circular to the notice of their respective FII clients for necessary compliance.
This circular is 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 — Declaration and Undertaking regarding PCC, MCV or equivalent structure by FIIs. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.