Disclosures of Material Changes and Other Obligations for Foreign Portfolio Investors
Summary
This circular modifies the FPI Master Circular to implement relaxed timelines for disclosing material changes by Foreign Portfolio Investors. It categorizes material changes into Type I and Type II, specifying distinct reporting windows of seven working days and thirty days respectively. The document also outlines specific obligations for Designated Depository Participants regarding the assessment and escalation of these disclosures.
Text
Para 14 of Part A stands modified as under: 'i. In terms of Regulation 22, if there is any change in the material information previously furnished by the FPI to the DDP and/or SEBI... it shall inform the DDP and/or the Board in writing...'
'Type I' material changes shall be informed by FPIs as soon as possible and within seven working-days of the occurrence of the change and the supporting documents (if any) shall be provided within 30 days of such change.
The following material changes shall be considered as ‘Type I’ material changes: I. Change of Jurisdiction; II. Name change on account of acquisition...; III. Acquisition/merger/demerger resulting in cessation of existence of FPI...
‘Type II’ material changes, i.e., any material changes other than those considered as ‘Type I’ material changes, shall be informed and supporting documents (if any) shall be provided by FPIs as soon as possible and within 30 days of such change.
The DDP shall examine all material changes informed by the FPIs and re-assess the eligibility of the FPI including requiring FPIs to seek fresh registration. However, the DDP shall mandatorily require the FPI to seek fresh registration in case of ‘Type I’ material changes listed at sr. no. I to VI of clause (b)...
Where there is a delay in intimation of material change by the FPI to the DDP, the DDP shall, as soon as possible but not later than two working days, inform all such cases to SEBI for appropriate action, if any, along with reason for delay.
Deletion of sub-fund/share classes/equivalent structure that invests in India, shall be considered a ‘Type II’ material change in terms of Para 14(i) below.
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 Regulations 22 and 44 of SEBI (Foreign Portfolio Investors) Regulations, 2019...
Source: SecMarx — Disclosures of Material Changes and Other Obligations for Foreign Portfolio Investors. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.