Asset Management companies to provide advisory services to Foreign Portfolio investors

The Securities and Exchange Board of India in its Circular dated 16th December 2019, has allowed Asset Management Companies (AMCs) to provide management and advisory services to appropriately regulated Foreign Portfolio Investors (FPIs).

Further AMCs  may  provide  management  and  advisory  services  to FPIs  falling  under the  following categories of FPIs as specified in FPI Regulations:

  • Government and government related investors such as central banks, sovereign wealth funds, international or multilateral organizations or agencies, including entities controlled or at least 75 percent directly or indirectly owned by such government and government related investors.
  • Entities such as pension funds, insurance, banks, etc.
  • Appropriately regulated FPIs wherein either of the above two entities hold more than 50% of shares/ units.

In case of agreements entered into by the AMCs on or before 16th December 2019 to provide management and advisory services to FPIs which do not fall under these categories, SEBI said that the AMCs may continue to provide the services till the end of period as mentioned in the agreement or till end of one year from the date of this Circular, whichever is earlier.

Click here to read the Notification.

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