Flexibility to FPIs in dealing with their securities post expiry

Framework for providing flexibility to Foreign Portfolio Investors (FPIs) in dealing with their securities post expiry of their registration

1. SEBI vide “Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors” No. SEBI/HO/AFD/AFD-PoD-2/P/CIR/P/2024/70 dated May 30, 2024 (hereinafter referred to as the ‘FPI Master Circular’) has, inter alia, specified the guidelines for registration of FPIs and the investment conditions/ restriction on FPIs under Part A and Part C of the FPI Master Circular respectively. The FPI Master Circular has been amended vide SEBI Circular No. SEBI/HO/AFD/AFD-POD-2/P/CIR/2024/76 dated June 05, 2024. Further, SEBI vide Master Circular for Custodians No. SEBI/HO/AFD/AFD–PoD-2/P/CIR/2024/40 dated May 10, 2024 (hereinafter referred to as the ‘Custodian Master Circular’) has, inter alia, specified the reporting requirements for Custodians under Chapter IV of the Custodian Master Circular.
   
2. SEBI (Foreign Portfolio Investors) (Amendment) Regulations, 2024 were notified on June 03, 2024, amending the SEBI (Foreign Portfolio Investors) Regulations, 2019, inter alia,for providing flexibility to Foreign Portfolio Investors(FPIs)in dealing with their securities post expiry of their registration.
   
3. In view of the amendments to the SEBI (FPI) Regulations, 2019 referred to at Para 2 above, the FPI Master Circular stands modified as follows:

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