Clarification regarding grandfathering of ODI issuers and modification of replies of FAQ 70 and FAQ 71
Summary
This circular clarifies the grandfathering provisions for Foreign Portfolio Investors issuing Overseas Direct Investments under the FPI Regulations, 2014. It permits existing ODI subscribers to continue their positions if they meet specific eligibility criteria or allows them to hold until expiry or December 31, 2020. The replies to FAQ 70 and FAQ 71 are modified to allow fresh issuances to eligible entities, effective from August 1, 2016.
Text
The ODI subscribers who have subscribed to ODIs under FII Regulations can continue to subscribe to ODIs under the FPI regime, subject to the condition that they comply with Regulation 22 of SEBI FPI Regulations, 2014 and meet the eligibility criteria as laid down in the SEBI circular CIR/IMD/FIIC/20/2014 dated November 24, 2014 along with other norms which may be notified by SEBI from time to time.
Those ODI subscribers which do not meet the aforementioned norms, including unregulated funds whose investment manager is appropriately regulated, can continue to hold the position till the date of expiry of such positions or till December 31, 2020, whichever is earlier. Such subscribers cannot take fresh positions or renew the old positions.
Fresh ODIs can be issued to those entities which comply with SEBI circular CIR/IMD/FIIC/20/2014 dated November 24, 2014 along with other conditions that may be notified by SEBI from time to time read along with Regulation 22 of SEBI FPI Regulations, 2014
The replies for FAQ 70 and FAQ 71 of SEBI FAQs to SEBI (FPI) Regulations, 2014 stands modified from the date of this circular getting effective.
This circular shall be effective from August 1, 2016
Source: SecMarx — Clarification regarding grandfathering of ODI issuers and modification of replies of FAQ 70 and FAQ 71. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.