The Securities and Exchange Board of India (SEBI) has granted relaxation to foreign portfolio investors from strict enforcement of SEBI (Foreign Portfolio Investors) Regulations.
The SEBI notified the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2022 which seeks to further amend the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019.
In the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019, in sub-regulation (1) of regulation 7, the words “National Securities Depositories Limited” shall be substituted with the word “the Board”.
In Chapter VIII-A, after regulation 43A, the regulation in respect of “Exemption from strict enforcement of the regulations in other cases shall be inserted.
The Board may suo motu or on an application made by a foreign portfolio investor, for reasons recorded in writing, grant relaxation from the strict enforcement of any of the provisions of these regulations, subject to such conditions as the Board deems fit to impose in the interests of investors and the securities market and for the development of the securities market, if the Board is satisfied that the non-compliance is caused due to factors beyond the control of the entity; or the requirement is procedural or technical in nature.
The application referred to under sub-regulation (1) shall be accompanied by a non-refundable fee of US $ 1,000 payable by way of NEFT/ RTGS/ IMPS or any other mode allowed by the Reserve Bank of India in the designated bank account of the Board.”
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