The Securities and Exchange Board of India (SEBI) vide notification dated 19th December, 2019, notifies The Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2019.
The amendment is brought under regulation 2(1)(n) which defines various terms. As per the amendment the term “non-resident Indian” and “overseas citizen of India” shall have the same meaning as mentioned under Rule 2 of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 made under the Foreign Exchange Management Act, 1999.
The regulation 20(8) dealing with “Investment restrictions” has been substituted. The substituted provision states that an entity registered as a foreign portfolio investor shall be permitted to invest in Indian securities as a person resident outside India in accordance with provisions of the Foreign Exchange Management Act, 1999 and rules and regulations made thereunder.
Further, Regulation 20(9) has been omitted, which directed the Board that, when the Government of India enters into agreements or treaties with other sovereign Governments and where such agreements or treaties specifically recognize certain entities to be distinct and separate, the Board may, during the validity of such agreements or treaties, recognize them as such, subject to conditions.
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