Amendments to the regulatory framework providing flexibility for increased contribution by NRIs, OCIs and RII, in the corpus of FPIs located in IFSCs

The Securities and Exchange Board of India (SEBI) had in its 205th Board Meeting  inter-alia, approved the regulatory framework for increased participation of Non-resident Indians (NRIs), Overseas Citizens of India (OCIs) and Resident Indian Individuals (RIIs) into the Indian Capital Markets through Foreign portfolio Investors (FPIs) that are based out of International Financial Services Centers (IFSCs) in India and regulated by the International Financial Services Authority (IFSCA). The IFSCA had also issued a circular dated 2 May 2024 providing details of the regulatory framework approved by SEBI. However, a circular from SEBI was awaited.

SEBI has now issued Circulars on 26 June 2024 and 27 June 2024 (Circulars) amending the SEBI (FPI) Regulations, 2019 to give effect to the framework approved in the 205th Board Meeting.

This alert summarizes the regulatory framework approved by SEBI in the Circulars.

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