• IND SEBI published the SEBI (foreign portfolio investors) (amendment) regulations, 2024, which make amendments to the 2019 principal regulations on the same subject.
• The changes aim to streamline the regulatory framework governing FPIs in India.
• Follows IND SEBI May 2024 issued a new master circular for FPIs.

Overview of Amendments

• The 2019 regs are amended in relation to FPIs whose registration certificate has lapsed.
• FPIs with invalid certificates on 3 June 2024 will be granted 360 days to sell their securities or wind up their derivative positions in India; this extension provides time for FPIs to comply with regulatory requirements without disrupting market stability.
• Provisions are inserted to introduce a new framework for the payment of registration fees, with FPIs being required to pay registration fees every three years.
• A clarification is added that any additional periods granted in accordance with the new provisions do not exempt FPIs from any enforcement action that SEBI may initiate.
• FPIs whose certificates have expired and who have not disposed of their securities or wound up their derivatives positions within the period allowed, will be deemed to have written off their securities, but the conditions of write-off will be prescribed by SEBI.

Effectiveness

• The regulations take effect on their publication in the official gazette, i.e. 3 June 2024.