Sebi tweaks operational guidelines for FPIs, depository participants

Capital markets regulator Sebi has tweaked the operational guidelines for depository participants and foreign portfolio investors (FPIs) pertaining to registration certificates of such foreign investors and change in their name.

The new guidelines will be applicable from May 9, the Securities and Exchange Board of India (Sebi) said in a circular on Friday.

According to the regulator, the framework has been modified pertaining to certificate of registration for FPIs and change in their name.

With regard to registration certificate for FPIs, the regulator said the designated depository participant (DDP) will grant the certificate of registration, bearing the registration number generated by Sebi.

In case an FPI has undergone a change in name, Sebi said the designated depository participant will effect the name change in the certificate after receiving such request.

"The DDP shall issue a letter and fresh registration certificate to such applicant acknowledging the change in name. Respective depositories shall make necessary arrangements for DDPs to provide fresh registration certificate as an acknowledgement from its database including a statement that the name change has been granted without prejudice to any tax liability/ implication in India," Sebi said.

This comes after Sebi notified rules in January this year for generation of FPI registration number by the capital markets regulator.

Subsequently, the Ministry of Finance in March amended the Common Application Form (CAF), wherein both the depositories -- NSDL and CDSL --have been allowed to host the CAF for FPI registration.

In order to operationalise the same, Sebi has decided decided to modify the operational guidelines.