The Securities and Exchange Board of India on 1st June 2021 has notified guidelines for relocation of foreign funds to the International Financial Services Centre and in order to facilitate the relocation it has been decided that an FPI may approach its Designated Depository Participants for approval of a one-time ‘off-market transfer of its securities to the resultant fund’.
The DDP after appropriate due diligence may accord its approval for a one-time ‘off-market’ transfer of securities for such relocation.
Relocation request will imply that the FPI has deemed to have applied for surrender of its registration and the ‘off-market’ transfer shall be allowed without prejudice to any provisions of tax laws and FEMA.
