INDIA: New rules for India FPI registration with depositories

Thursday January 9 2014

In line with changes in respect of foreign investment in India, the Securities and Exchange Board of India (SEBI) has issued operating guidelines for depository participants to register new foreign portfolio investor (FPI) entities and to ensure that their combined holding in any listed company remains capped at 10 per cent.

The operating guidelines have been published as a result of the notification by SEBI of the FPI Regulations 2014. This new class of investors will encompass all foreign institutional investors (FIIs), their sub-accounts and qualified foreign investors (QFIs).

Each FPI will engage a designated depository participant (DPP) before making an investment in the Indian securities market. At all times the DDP and custodian of securities of the FPI will be the same entity.

Click on the above link for the Guidelines.