On 13 July, SEBI updated investment by FPIs in primary issuance.
- SEBI (FPI) Regulations, 2014 mandates that purchase of equity shares of each
company, by single FPI or group, shall be below 10% of the total issued capital.
- Rule 23(3) of FPI Regulations requires if same set of ultimate beneficial owners
invest through multiple entities, they will be treated as part of the same group.
- Investment limits of such entities are clubbed at investment limit as single FPI.
- For purpose of identifying investor group, the designated depository participant
shall obtain details provided by FPI under clause 2.2 of the FPI application form.
- Monitoring investment limits at group level, done by depositories based on this.
- At time of finalized basis of allotment in primary market issuance, registrar and
transfer agents, use a permanent account number (PAN) issued by Income Tax
Department of India for checking compliance of single foreign portfolio investor.
- Obtain validation from depositories for the foreign portfolio investors who have
invested in particular primary market issuance, to ensure is no breach of limits.
- Depositories put in place the necessary systems for sharing of information with
RTAs in timelines for issue procedures, as prescribed by SEBI from time to time
On 13 July 2018, HK SFC, gazetted amendments to codes on mergers, takeovers.
- Released consultation conclusions and respondents were generally supportive of
proposals, majority of which were adopted with some modifications from feedback.
- The amended codes which were gazetted on 13 July, will be effective immediately.
Key Proposals from Original Consultation:
- Increase voting approval threshold for whitewash waivers to 75% of shareholders.
- Panel to require compensation be paid to shareholders who suffered from breach.
- Clarify the obligations of persons dealing with the Takeovers Executive, Takeovers
Panel and the Takeovers Appeal Committee in all Codes transactions, cooperation.
- Also sets out proposed amendments to the term “associate” as well as approval
of delistings in jurisdictions which do not afford the compulsory acquisition rights.