Foreign Portfolio Investors (Amendment) Regulations, 2024

PUBLISHED ON: 18-06-2024

The Gazette of India has issued a notification dated May 31, 2024, and published on June 3, 2024 (“Commencement Date”) (available here) which amended
the SEBI (Foreign Portfolio Investors) Regulations, 2019 (“FPI Regulations”).

An overview of the same is set out hereunder:
▪ Pursuant to the SEBI (Foreign Portfolio Investors) (Amendment) Regulations, 2024 (“Amendment”), a Foreign Portfolio Investor (“FPI”) holding securities or derivatives in India, whose certificate of registration is not valid as on the Commencement Date, is allowed to sell such securities or wind up their open position in derivatives in India within 360 days from the Commencement Date, as specified by SEBI, thereby modifying the erstwhile period (i.e., 1 year from the publication date of the FPI Regulations).
▪ Further, an FPI is required to pay the registration fees for every period of 3 years, before the commencement of the said period.
▪ If the registration and late fee, as may be applicable are not paid within 30 days from the expiration of the aforesaid 3-year period, and the FPI continues to hold securities or derivatives in India, it is allowed to sell such securities or wind up their open position in derivatives within 360 days from the date of expiry of the 30-day period (“Extended Period”), as specified by SEBI.
▪ An FPI, with an invalid certificate of registration and who has not sold off the securities or wound up their open position in derivatives as per the FPI Regulations, is deemed to have written off such securities, as specified by SEBI.
▪ The additional periods granted vide the Amendment are without prejudice to any actions that may be initiated by SEBI.