Modification in Annexure to Common Application Form (CAF) - SEBI - SEBI/HO/AFD/AFD-POD-3/P/CIR/2024/145

CIRCULAR SEBI/HO/AFD/AFD-POD-3/P/CIR/2024/145 October 22, 2024 To, 1. Foreign Portfolio Investors ( FPIs ) 2. Designated Depository Participants ( DDPs ) and Custodians 3. The Depositories Dear Sir / Madam, Subject: Modification in Annexure to Common Application Form (CAF) 1. Vide Circular dated June 27, 2024 , SEBI modified the Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors No. SEBI/HO/AFD/AFD-PoD-2/P/CIR/P/2024/70 dated May 30, 2024 ( FPI Master Circular ) to provide flexibility of having up to hundred percent aggregate contribution by NRIs, OCIs and RI individuals in the corpus of FPIs based in International Financial Services Centres ( IFSCs ) in India and regulated by International Financial Services Centres Authority ( IFSCA ). 2. In this regard, to provide the flexibility to existing and new FPIs, the Annexure to Common Application Form attached as Annexure B to the FPI Master Circular is modified as follows: 2.1. The following additional option is inserted under Section B-II: NRI/OCI/RI Entitlement in FPI in Para 5 of Part B titled Additional information and shall be applicable only in case of applicants based in IFSCs in India: We confirm that NRIs/OCIs/RIs as investors in the FPI and contributions by single NRI/OCI/RI including those of NRI/OCI/RI controlled Investment Manager are below 25 percent of the corpus of the FPI. The aggregate contributions by NRI/OCI/RI are intended to be above 50% / are above 50% of the corpus of the FPI and we shall at all times be in compliance with the SEBI (Foreign Portfolio Investors) Regulations, 2019 and Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors as amended from time to time. [Applicable only in case of eligible applicants from International Financial Services Centres in India] 3. Further, the information, documents and declaration required to be submitted by an FPI based in IFSC in India that have/intends to have up to hundred percent NRI/RI/OCI participation in terms of the aforementioned Circular dated June 27, 2024, shall be provided in the format at Annexure - 1 . 4. The provisions of this circular shall come into force with immediate effect. 5. The Depositories are advised to make appropriate modifications in the CAF module hosted on their respective websites. 6. This Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulations 4(c) and 44 of SEBI (Foreign Portfolio Investors) Regulations, 2019 to protect the interest of investors in securities and to promote the development of, and to regulate the securities market. 7. This Circular is available at www.sebi.gov.in under the link Legal ---Circulars . Yours faithfully, Manish Kumar Jha Deputy General Manager Alternative Investment Fund and Foreign Portfolio Investors Department Tel No.: 022 26449219 E-mail: [email protected] Encl: Annexure 1 Annexure - 1 On the Letter Head of FPI based in an IFSC in India To, Date: (Name of the DDP) __________ Subject: Declaration pursuant to sub-para 1(ii)(e) of Part A of SEBI Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors (Modified through SEBI Circular SEBI/HO/AFD/AFD-POD-2/P/CIR/2024/89 dated June 27, 2024.) Dear Sir / Madam, We (Name of the FPI) (hereinafter referred to as FPI) having FPI registration number _________ hereby declare that; We am/are intending to / already have aggregate contribution, of NRIs, OCIs and RI individuals of more than 50% of the corpus of the FPI. We undertake that contribution from a single NRI / OCI / RI shall remain below 25% of the corpus of the FPI at all times. Select any one of the following: __The details of NRI/OCI/RI constituents along with the copies of their PAN / alternate acceptable documents are as under: Sl. No. Name of NRI / OCI / RI Category (NRI/ OCI/ RI) PAN Type of right held in the FPI (Ownership/ Economic Interest/ Control) % of ownership/ economic interest/ control held in the FPI Passport Number / OCI Card Number/ identity document issued by Government of India if PAN is not available The details of non-individual constituents which are controlled directly or indirectly by one or more NRIs/OCIs/RI individuals, or where NRI/OCI/RI Individuals together hold 50% or more ownership or economic interest on a full look through basis, along with the copies of their PAN / alternate acceptable documents are as under: Sl. No. Name of entity Type of right held in the entity (Ownership/ Economic Interest/ Control) % of ownership/ economic interest/ control held in the FPI Name of NRI / OCI / RI Category (NRI/ OCI/ RI) PAN Type of right held in the entity (Ownership/ Economic Interest/ Control) % of ownership/ economic interest/ control held in the entity Passport Number / OCI Card Number/ identity document issued by Government of India if PAN is not available We further declare that we shall at all times provide PAN card copies / copies of acceptable documents of all NRI/OCI/RI investors / constituents. In case of non-individual constituents which are controlled directly or indirectly by one or more NRIs/OCIs/RI individuals, or where NRI/OCI/RI Individuals together hold 50% or more ownership or economic interest on a full look through basis, we shall provide the copies of the PAN / acceptable documents of such NRI/OCI/RI individuals. Where the NRI/OCI/RI individual s PAN is not available, we shall submit the following documents: I. A declaration from such NRI/OCI constituents to the effect that they neither have a PAN nor any taxable income in India; II. A declaration from such RI individuals to the effect that they are exempted from obtaining PAN by the Indian tax authorities and the legal provision under which they are exempted; III. Copy of Indian passport in case of NRIs. IV. Copy of the OCI card in case of OCIs. V. Copy of any identity document issued by Government of India (such as Aadhaar, passport, etc.) in case of RI individuals. OR __ We are setup as a fund in IFSCs in India and regulated by IFSCA, and we satisfy all the requirements specified under sub-para 1(ii)(e)(iv) of Part A of SEBI Master Circular for Foreign Portfolio Investors, Designated Depository Participants and Eligible Foreign Investors. Yours Faithfully, Name: Designation: