Reference to Circular no. FITTC/FII/02/2002 dated May 15, 2002- In regard to credit of proceeds due to write off of securities held by Foreign Portfolio Investors/deemed Foreign Portfolio Investors.
Summary
This circular partially modifies SEBI's 2002 directive regarding the credit of proceeds from securities written off for Foreign Portfolio Investors. It mandates that proceeds from disinvestment and cash corporate benefits be credited to the Investor Protection and Education Fund within seven days when claimants cannot be ascertained. The document retains all other terms from the original 2002 circular and instructs custodians to notify their FPI clients.
Text
Sale proceeds net of expenses shall be credited to the Investors Protection and Education Fund of SEBI not later than 7 days from receipt if the custodian is unable to deliver securities or ascertain the claimant due to unforeseen circumstances.
Corporate benefits in the form of securities shall be reported to SEBI in the normal manner, while cash benefits like dividends shall be credited to the Investors Protection and Education Fund of SEBI not later than 7 days from receipt.
All other terms and conditions laid down in the circular no. FIITC/FII/02/2002 dated May 15, 2002 shall continue to apply.
The Designated Depository Participants/Custodians are requested to bring the contents of this circular to the notice of their FPI clients.
Source: SecMarx — Reference to Circular no. FITTC/FII/02/2002 dated May 15, 2002- In regard to credit of proceeds due to write off of securities held by Foreign Portfolio Investors/deemed Foreign Portfolio Investors.. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.