SEBI issues Guidelines pertaining to Surrender of FPI Registration [Read Guidelines]

The Securities and Exchange Board of India (SEBI) issued the  guidelines pertaining for Surrender of FPI Registration.

In  terms  of  SEBI  (Foreign  Portfolio  Investors)  Regulations,  2019, any  FPI (‘applicant’) desirous of surrendering the certificate of registration may request for such surrender to the DDP.

Operational  Guidelines for FPIs and DDPs issued vide SEBI circular No. IMD/FPI&C/CIR/P/2019/124 dated November 05, 2019, prescribes the procedural requirements to be followed by the DDP for processing such requests.

In  order  to have  a  uniform  market  practice for  processing  of such  surrender requests, DDPs shall adhere to the various additional guidelines.

Firstly, while making an application to SEBI for seeking “No Objection Certificate” (NOC) for surrender, the DDP shall confirm the Accounts held by the applicant in the capacity of FPI have NIL balance and are blocked for further transactions. Further, the CP code of the FPI is also blocked. There are no dues/ fees pending towards SEBI. There are no actions/ proceedings pending against the said applicant with respect to the FPI.

Secondly, DDP shall ensure that all the accounts (including bank account and securities

account) held by the applicant in the capacity of FPI are closed; and the CP code is deactivated within 10 working days from the date of receipt of NOC from SEBI.

To Read the full text of the Guidelines CLICK HERE

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