{"id":4189,"date":"2021-04-16T09:24:52","date_gmt":"2021-04-16T09:24:52","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=4189"},"modified":"2021-04-19T05:46:08","modified_gmt":"2021-04-19T05:46:08","slug":"sebi-issues-guidelines-concerning-the-surrender-of-fpi-registration","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/sebi-issues-guidelines-concerning-the-surrender-of-fpi-registration\/","title":{"rendered":"SEBI Issues Guidelines Concerning the Surrender of FPI Registration"},"content":{"rendered":"\n<p>The Securities and Exchange Board of India (SEBI), on 30.03.2021, has passed a Circular relating to the Guidelines concerning the Surrender of FPI Registration, vide circular no SEBI\/ HO\/ IMD\/ FPI&amp;C\/ CIR\/ P\/ 2021\/ 045.<\/p>\n\n\n\n<p>Further, the\nsaid circular will come into force with immediate effect and is issued under\nthe ambit of the powers provided by section 11 (1) of the SEBI Act 1992.<\/p>\n\n\n\n<p>In this article,\nthe key points of consideration will be the concept of SEBI and Foreign\nPortfolio Investment, together with the guidelines concerning the Surrender of\nFPI Registration.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a5b95f08d3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a5b95f08d3\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-issues-guidelines-concerning-the-surrender-of-fpi-registration\/#Concept_of_SEBI\" title=\"Concept of SEBI\">Concept of SEBI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-issues-guidelines-concerning-the-surrender-of-fpi-registration\/#Concept_of_Foreign_Portfolio_Investment\" title=\"Concept of Foreign Portfolio Investment\">Concept of Foreign Portfolio Investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-issues-guidelines-concerning-the-surrender-of-fpi-registration\/#Applicability_of_the_Circular\" title=\"Applicability of the Circular\">Applicability of the Circular<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-issues-guidelines-concerning-the-surrender-of-fpi-registration\/#Key_Guidelines_Concerning_the_Surrender_of_FPI_Registration\" title=\"Key Guidelines Concerning the Surrender of FPI Registration\">Key Guidelines Concerning the Surrender of FPI Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-issues-guidelines-concerning-the-surrender-of-fpi-registration\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/sebi-issues-guidelines-concerning-the-surrender-of-fpi-registration\/#Official_SEBI_Circular_on_Guidelines_Concerning_the_Surrender_of_FPI_Registration\" title=\"Official SEBI Circular on Guidelines Concerning the Surrender of FPI Registration\">Official SEBI Circular on Guidelines Concerning the Surrender of FPI Registration<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_SEBI\"><\/span>Concept of SEBI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term SEBI stands for the Securities and Exchange Board of India. It is the apex market regulator in India and was formed in April 1992, under the ambit of <strong>SEBI Act 1992<\/strong><sup><a rel=\"noreferrer noopener\" href=\"https:\/\/www.sebi.gov.in\/sebi_data\/attachdocs\/1456380272563.pdf\" target=\"_blank\"><strong>[1]<\/strong><\/a><\/sup>. <\/p>\n\n\n\n<p>Further, SEBI has wide-ranging regulatory, enforcement, and investigative powers, comprising of the ability to levy fines and penalties on violators.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Foreign_Portfolio_Investment\"><\/span>Concept of Foreign Portfolio Investment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term FPI or Foreign\nPortfolio Investment means an investment by the non-residents in Indian\nsecurities, comprising of shares, corporate bonds, government bonds, units of\nbusiness trusts, convertible securities, etc. <\/p>\n\n\n\n<p>Further, it shall be\nnoted that the class of investors who invest in these securities are known as\nForeign Portfolio Investors.<\/p>\n\n\n\n<p>Moreover, the laws\ngoverning the Foreign Portfolio Investment in India are as follows:<\/p>\n\n\n\n<ol><li>Securities and Exchange Board of India;<\/li><li>SEBI (Foreign Portfolio Investors) Regulations 2019;<\/li><li>Income Tax Act 1961;<\/li><li>Foreign Exchange Management Act 1999;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability_of_the_Circular\"><\/span>Applicability of the Circular<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The circular\ncontaining guidelines concerning the surrender of FPI Registration will be\napplicable on the following:<\/p>\n\n\n\n<ol><li>Foreign\nPortfolio Investors;<\/li><li>Designated\nDepository Participants;<\/li><li>Custodians;<\/li><li>Depositories\n(NSDL and CDSL);<\/li><li>Recognised Stock\nExchanges;<\/li><li>Clearing\nCorporations;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Guidelines_Concerning_the_Surrender_of_FPI_Registration\"><\/span>Key Guidelines Concerning the Surrender of FPI Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Based on the\nterms and provisions of the SEBI (Foreign Portfolio Investors) Regulations\n2019, any Foreign Portfolio Investor desirous of surrendering the registration\ncertificate may furnish a request for such surrender to the Designated\nDepository Participants.<\/p>\n\n\n\n<p>Further, the\nOperational Guidelines for the Foreign Portfolio Investors and Designated\nDepository Participants were issued by way of SEBI Circular No. IMD\/ FPI&amp;C\/\nCIR\/ P\/ 2019\/ 124, issued on 05.11.2019, prescribes the procedural intricacies\nto be complied with by the DDP for processing such surrender requests.<\/p>\n\n\n\n<p>Also, it shall\nbe noted that to have a uniform securities market practice for the processing\nof such surrender requests, the Designated Depository Participant needs to\nadhere to the additional guidelines as follows:<\/p>\n\n\n\n<ol><li>It shall be noted that while furnishing an application to the board, i.e., SEBI, for seeking \u201cNOC\u201d (No Objection Certificate)for surrender, the Designated Depository Participant will need to confirm the following listed with regard to the FPI:<\/li><li>All the accounts held by an applicant in the capacity of Foreign Portfolio Investor have NIL or zero balance and are blocked as well for further transactions., then, in that case, the CP code of the Foreign Portfolio Investor is also blocked;<\/li><li>There are no outstanding dues or fees pending towards the board, i.e., SEBI;<\/li><li>There are no pending actions or proceedings against the said applicant;<\/li><li>A Designated Depository Participant will ensure the following listed within a period of 10 working days, starting from the date of the receipt of the No Objection Certificate from SEBI:<\/li><li>all the accounts (comprising of the bank and securities account) kept by the applicant in the holding capacity of the&nbsp; Foreign Portfolio Investment are closed; and<\/li><li>the deactivation of CP code was done;<\/li><\/ol>\n\n\n\n<p>Also, it shall be duly noted that all the Custodians and&nbsp; Designated Depository Participants&nbsp;are&nbsp;directed&nbsp;to bring the provisions&nbsp;of the said circular&nbsp;to the notice of their respective clients.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, SEBI in furtherance of SEBI Circular No. IMD\/ FPI&amp;C\/ CIR\/ P\/ 2019\/ 124, issued on 05.11.2019, has passed a circular containing the additional guidelines that the Designated Depository Participant needs to adhere to regarding the surrender of FPI Registration.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/sebi-decides-to-relax-timelines-for-compliance-requirements\/\">SEBI Decides to Relax Timelines for Compliance Requirements<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_SEBI_Circular_on_Guidelines_Concerning_the_Surrender_of_FPI_Registration\"><\/span>Official SEBI Circular on Guidelines Concerning the Surrender of FPI Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/04\/1617087784957.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">1617087784957<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Securities and Exchange Board of India (SEBI), on 30.03.2021, has passed a Circular relating to the Guidelines concerning the Surrender of FPI Registration, vide circular no SEBI\/ HO\/ IMD\/ FPI&amp;C\/ CIR\/ P\/ 2021\/ 045. Further, the said circular will come into force with immediate effect and is issued under the ambit of the powers [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":4190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17,50,64],"tags":[583],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/4189"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=4189"}],"version-history":[{"count":6,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/4189\/revisions"}],"predecessor-version":[{"id":4220,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/4189\/revisions\/4220"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/4190"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=4189"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=4189"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=4189"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}