The Securities and Exchange Board of India on 4th August 2021 has modified the explanation provided under Para 2 (ii) (b) of Part A of the Operational Guidelines for FPIs and DDPs.
Para 2 deals with Guidance for Processing of foreign portfolio investors (FPI) applications by Designated Depository Participants (DDP) in which the DDP may obtain requisite declaration from applicant for satisfying eligibility criteria and the conditions mentioned below relating to NRIs, OCIs and/or RIs being constituents of the applicant.
Where NRIs or OCI or RIs are constituents of the applicant, the contribution of a single NRI or OCI or RI shall be below twenty-five percent of the total contribution in the corpus of the applicant.
The aggregate contribution of NRIs, OCIs and RIs shall be below fifty percent of the total contribution in the corpus of the applicant.
Explanation: The contribution of resident Indian individuals shall be made through the Liberalised Remittance Scheme (LRS) notified by Reserve Bank of India and shall be in global funds whose Indian exposure is less than 50%.”
