Clarification regarding grandfathering of ODI
issuers and modification of replies of FAQ 70 and FAQ 71 of SEBI FAQs to SEBI
(FPI) Regulations, 2014
SEBI Circular:
Circular No: CIR/IMD/FPI&C/61/2016 dated June 29, 2016
Applicability:
To All Foreign Portfolio Investors
Through their Custodians of Securities/DDPs
Crux of the Circular
- SEBI has published clarifications to certain queries raised by the
Foreign Portfolio Investors issuing ODIs
- In this regard the replies given to the question no 70 and 71 of SEBI FAQs to SEBI (FPI) Regulations, 2014 shall stand modified and this circular shall be effective from August 2016
-
Query 1: ODIs have been issued to unregulated funds under the FII Regulations. Whether these ODI positions can continue under the FPI regime? Whether the existing ODI subscribers can continue to subscribe to ODIs?
Query 1: ODIs have been issued to unregulated funds under the FII Regulations. Whether these ODI positions can continue under the FPI regime? Whether the existing ODI subscribers can continue to subscribe to ODIs?
Clarification:
o
The ODI subscribers who have
subscribed to ODIs under FII Regulations can continue to subscribe to ODIs
under the FPI regime, subject to comply with Regulation 22 of SEBI FPI
Regulations, 2014 and meet the eligibility criteria as laid down in the SEBI
circular CIR/IMD/FIIC/20/2014 dated November 24, 2014 along with other norms
which may be notified by SEBI from time to time.
o
Those ODI subscribers who do not
meet the aforementioned norms, including unregulated funds whose investment manager
is appropriately regulated, can continue to hold the position till the date of
expiry of such positions or till December 31, 2020, whichever is earlier. Such
subscribers cannot take fresh positions or renew the old positions.
- Query 2: Whether an ODI issuer can issue ODIs
to existing entities, which were registered as clients but did not have
positions as on January 07, 2014?
Clarification:
o Fresh ODIs can be issued to those entities which comply with SEBI circular CIR/IMD/FIIC/20/2014 dated November 24, 2014 along with other conditions that may be notified by SEBI from time to time read along with Regulation 22 of SEBI FPI Regulations, 2014
Source:
http://www.sebi.gov.in/cms/sebi_data/attachdocs/1467202574494.pdf
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