New Delhi, Market regulator Sebi on Wednesday relaxed the deadline for disclosure of material changes by foreign portfolio investors (FPIs).
The regulator classified the material changes notified by FPIs into two groups. Type I group includes changes which require new registration by FPIs, or which affect any privileges or exemptions available to such foreign investors and Type II includes all other material changes.
SEBI in its circular said FPIs are required to report Type I changes within seven working days and provide supporting documents within 30 days and Type II changes require notification and supporting documents within 30 days.
Currently, FPIs get up to seven working days to submit information to the watchdog regarding any material change in their structure or ownership or control or investor group.
Some material changes of Type 1 include a change in jurisdiction; Name changes due to acquisitions, mergers, separations and ownership. Type II is any physical change other than those considered 'Type I'.
SEBI said designated depository participants (DDPs) need to examine all significant changes reported by FPIs and reassess the eligibility of the FPI, including the need for fresh registration by the FPI. However, it is mandatory for the DDP to take fresh registration from the FPI in case of 'Type I' material change.
“Where there is a delay by the FPI in reporting the material change to the DDP, the DDP shall, as soon as possible, but not more than two working days, report all such cases to SEBI for appropriate action, if any, as well as This is the reason for the delay,” the regulator said.
The regulator classified the material changes notified by FPIs into two groups. Type I group includes changes which require new registration by FPIs, or which affect any privileges or exemptions available to such foreign investors and Type II includes all other material changes.
SEBI in its circular said FPIs are required to report Type I changes within seven working days and provide supporting documents within 30 days and Type II changes require notification and supporting documents within 30 days.
Currently, FPIs get up to seven working days to submit information to the watchdog regarding any material change in their structure or ownership or control or investor group.
Some material changes of Type 1 include a change in jurisdiction; Name changes due to acquisitions, mergers, separations and ownership. Type II is any physical change other than those considered 'Type I'.
SEBI said designated depository participants (DDPs) need to examine all significant changes reported by FPIs and reassess the eligibility of the FPI, including the need for fresh registration by the FPI. However, it is mandatory for the DDP to take fresh registration from the FPI in case of 'Type I' material change.
“Where there is a delay by the FPI in reporting the material change to the DDP, the DDP shall, as soon as possible, but not more than two working days, report all such cases to SEBI for appropriate action, if any, as well as This is the reason for the delay,” the regulator said.
