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. With this amendment, the following changes are made to the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019:
- In Regulation 2(1)(n), the definition of “non-resident Indian” and “overseas citizen of India” has been amended. Asper new definition, these terms will have the same meaning as rule 2 of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 instead of regulation 2 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 as previously mentioned.
- In Regulation 20(8) an entity registered as a foreign portfolio investor will 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.
- Regulation 20(9) which dealt with investment restrictions of the Principal Regulations has been omitted.