Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2021

The Securities and Exchange Board of India through notification dated 3rd August, 2021 has issued the Securities and Exchange Board of India (Foreign Portfolio Investors) (Amendment) Regulations, 2021. The amendment provides that the non-resident Indians or overseas citizens of India or resident Indian individuals may be constituents of an applicant for FPI registration provided they meet the conditions specified by the Board from time to time.

It is further provided that resident Indian other than individuals, may also be constituents of the applicant, subject to the following conditions, namely –

1. Such resident Indian, other than individuals, is an eligible fund manager of the applicant, as provided under sub-section (4) of section 9A of the Income Tax Act, 1961 (43 of 1961); and
2. The applicant is an eligible investment fund as provided under sub-section (3) of section 9A of the Income Tax Act, 1961 (43 of 1961) which has been granted approval under the Income Tax Rules, 1962;