SEBI

New System for Monitoring Foreign Investment Limits in listed Indian companies-SEBI

New System for Monitoring Foreign Investment Limits in listed Indian companies

CIRCULAR
 
IMD/FPIC/CIR/P/2018/61
April 05 , 2018
To
1. All Foreign Portfolio Investors ( through their designated Custodian of Securities)
2. The Depositories (NSDL and CDSL)
3. The Stock Exchanges (BSE , NSE and MSEI)
 
Dear Sir / Madam,

Sub: Monitoring of Foreign Investment limits in listed Indian companies

1. Foreign Investment in India is regulated in terms of clause (b) of sub-section 3 of section 6 and section 47 of the Foreign Exchange Management Act, 1999 (FEMA) read with Foreign Exchange Management (Transfer or Issue of a Security by a Person resident Outside India) Regulations, 2017 issued vide Notification FEMA 20(R)/2017 -RB dated November 7, 2017. FEMA prescribes the various foreign investmen t limits in listed Indian companies . These include the aggregate FPI limit, the aggregate NRI limit and the sectoral cap. The RBI Master Direction (FED Master Direction No . 11/2017-18) dated Janua ry 04, 2018 provides a compilation of the instructions issued on Foreign Investment in India and its related aspects under FEMA.

2. As per FEMA, the onus of compliance with the various foreign investment limits rests on the Indian company. In order to facilitate the listed Indian companies to ensure compliance with the various foreign investment limits, SEBI in consultation with RBI has decided to put in place a new system for monito ring the foreign investment limits.The architecture of the new system has been explained in Annexure A
 
3. The depositories (NSDL  and CDSL) shall put in place the necessary infrastructure and  IT systems for operationalizing the monitoring mechanism described at Annexure A. The Stock Exchanges (BSE, NSE and MSEI) shall also put in place the necessary infrastructure and IT systems for disseminating information on  the available investment  head room  in  respect  of listed Indian companies.
 
4. The depositories shall issue the necessary circulars and guidelines for collecting data on foreign investment from listed companies. The system for collecting this data from the companies shall go live on the date of the issuance of this circular. The companies shall provide the necessary data (details of which have been mentioned in Annexure A) to the depositories latest by April 30, 2018.
 
5.  The new system for monitoring foreign investment limits in listed Indian companies shall be made operational on May 01, 2018. The existing mechanism for monitoring the foreign investment limits shall be done away with once the new system is operationalized . RBI shall issue the necessary guidelines in this regard.

Th is circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992.

A  copy of this  circular  is available at the web  page  “Circulars” on our website  www.sebi.gov. in. Custodians are requested to bring the contents of this circular to the notice of their FPI clients.

Yours faithfully,

ACHAL SINGH
Deputy General Manager
Tel No.: 022-26449619
Email:  achals@sebi.gov.in

Annexure A-Architecture of the System for Monitoring Foreign Investment Limits in listed Indian companies Click Here >>

Share
Leave a Comment

Recent Posts

  • Empanelment

FDCM invites application for empanelment of practising CAs/ Chartered Accountant Firms

Invitation For Empanelment Of Practising Chartered Accountants / Chartered Accountant Firms Forest Development Corporation of Maharashtra Limited (FDCM Limited), Nagpur,…

2 days ago
  • Empanelment

PGRI invites application for CAs for empanelment for Circulation Verification work

Press Registrar General of India (PGRI) invites application for empanelment of Chartered Accountants. The Press Registrar General of India manages…

2 days ago
  • Income Tax

CBDT notifies revised Form for registration as valuer & authorised income tax practitioner

CBDT notifies revised Form No. 169 for making application for registration as a valuer under section 514 and authorised income…

2 days ago
  • Income Tax

Curtailing time to file reply to notice u/s 148A(b) from 30 days prejudiced assessee’s right – HC

Curtailing time to file reply to notice u/s 148A(b) from statutorily available 30 days to 15 days seriously prejudiced assessee’s…

3 days ago
  • Income Tax

For registration u/s 12AB, applicability of proviso to section 2(15) can’t be adjudicated

At the stage of registration u/s 12AB, the CIT(E) not empowered to adjudicate applicability of provisio to section 2(15) of…

4 days ago
  • Income Tax

Flower bed area not included in “built up area” to calculate eligible limit u/s 80IB(10)

Flower bed area could not be included in the definition of “built up area” to calculate eligible limit of 1000…

5 days ago