Sebi permits off market transfers to ease fund relocation to IFSC

Sebi regulations at present do not allow cashless transfers of securities between FPIs with different permanent account numbers

The Securities and Exchange Board of India (Sebi) has allowed the off-market transfer of securities with a view to make it easier for foreign funds to relocate to the International Financial Services Centre (IFSC) in Gujarat. 

At present, Sebi regulations do not allow the cashless transfer of securities between foreign portfolio investors (FPIs) with different permanent account numbers.

“It has been decided that an FPI (‘original fund’ or its wholly-owned special purpose vehicle) may approach its DDP (designated depository participant) for approval of a one-time ‘off-market’ transfer of its securities to the ‘resultant fund’. The DDP, after appropriate due diligence, may accord