SEBI notified the operational guidelines under the SEBI (Foreign Portfolio Investors) Regulations, 2019 on 5 November 2019. These guidelines were eagerly anticipated by several stakeholders to iron out the wrinkles of the new regulatory regime aimed at simplifying FPI investments into India.


The Securities and Exchange Board of India (SEBI), on 5 November 2019, notified the much-awaited Operational Guidelines for Foreign Portfolio Investors (FPIs), Designated Depository Participants (DDPs) and Eligible Foreign Investors (EFIs) (collectively, the Guidelines) under the SEBI (Foreign Portfolio Investors) Regulations, 2019 (New FPI Regulations). The New FPI Regulations overhauled the erstwhile SEBI (Foreign Portfolio Investors) Regulations, 2014 (2014 FPI Regulations). To read our previous analysis on the New FPI Regulations, please click here.

The Guidelines provide clarity on operational aspects relating to the implementation of the New FPI Regulations and fill in the blanks that the New FPI Regulations had left for coverage under SEBI circulars. The Guidelines also repeal (and consolidate) existing notifications, circulars, FAQs and guidelines that were issued under the 2014 FPI Regulations (including under the erstwhile Foreign Institutional Investor regime). This is a welcome change as stakeholders will no longer have to grapple with multiple and at times conflicting sources of regulation on the subject matter.

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