NRI or Overseas Citizens could be constituents of applicant under SEBI (Foreign Portfolio Investors) (Amendment) Regulations, 2021: SEBI [Read Notification]

The Securities and Exchange Board of India (SEBI) has notified that the non-resident Indians (NRIs) or overseas citizens of India could be constituents of applicants under SEBI (Foreign Portfolio Investors) (Amendment) Regulations, 2021.

The Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2021 makes changes to the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019.

Regulation 4(c) has been substituted, stating NRI or OCI or Resident Indian Individuals could be a part of the applicant provided they meet the conditions specified by the Board. In cases of Resident Indians other than individuals, they could be the constituents of the applicant if such person is a fund manager of the applicant or the applicant is an eligible investment fund approved under Income Tax Rules, 1962.

The new Regulation 4, clause (c) says that non-resident Indians or overseas citizens of India or resident Indian individuals may be constituents of the applicant provided they meet the conditions specified by the Board from time to time.

Provided that resident Indians other than individuals may also be constituents of the applicant, subject to the two conditions.

Firstly, such resident Indian, other than individuals, is an eligible fund manager of the applicant, as provided under sub-section (4) of section 9A of the Income Tax Act, 1961 (43 of 1961).

Secondly, the applicant is an eligible investment fund as provided under sub-section (3) of section 9A of the Income Tax Act, 1961 (43 of 1961) which has been granted approval under the Income Tax Rules, 1962”.

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