Regulation 13 - Procedure and grant of registration of sub-accounts. - Securities And Exchange Board of India (Foreign Institutional Investors) Regulations, 1995

Procedure and grant of registration of sub-accounts. 13. (1) For the purpose of grant of registration the Board shall take into account all matters which are relevant to the grant of such registration to the sub-account and in particular the following, namely:- 1 [ (a) the applicant falls into any of the following categories, namely:- (i) broad based fund or portfolio which is broad based, incorporated or established outside India; or (ii) proprietary fund of a registered foreign institutional investor; or (iii) foreign corporate; or (iv) foreign individual; or (v) university fund, endowment, foundation, charitable trust or charitable society who are eligible to be registered as a foreign institutional investor under these regulations. Explanation I: For the purposes of clause (a), (A) foreign corporate means a body corporate incorporated outside India which fulfills the following conditions:- (i) its securities are listed on a stock exchange outside India; (ii) it has asset base of not less than two billion US dollars; (iii) it had an average net profit of not less than fifty million US dollars during the three financial years preceding the date of the application. (B) foreign individual means a foreigner who fulfills the following conditions:- (i) has a networth of not less than fifty million US dollars; (ii) holds the passport of a foreign country for a period of at least five years preceding the date of application; (iii) holds a certificate of good standing from a bank; (iv) is the client of the foreign institutional investor or any other entity which belongs to the same group as the foreign institutional investor, for a period of at least three years preceding the date of the application: Explanation II: Non-resident Indian shall not be eligible to apply as sub-account: Provided that nothing contained in the Explanation I to clause (a) shall apply to a sub-account which was granted registration prior to commencement of the Securities and Exchange Board of India (Foreign Institutional Investors) (Amendment) Regulations, 2008.] 2 [(b)] the applicant is a fit and proper person; (c) the Foreign Institutional Investor through whom the application for registration is made to the Board holds a certificate of registration as Foreign Institutional Investor; (d) the Foreign Institutional Investor through whom an application for registration of sub-account is made, is authorised to invest on behalf of the sub-account; 3 [(e) the applicant and the Foreign Institutional through whom the application for registration of sub-account is made, have submitted joint undertakings as required by Form AA of the First Schedule;] 4 [(ee) Omitted by the SEBI (Foreign Institutional Investors) (Second Amendment) Regulations, 2006 w.e.f. 21-8-2006.] f) The sub-account has paid registration fees in accordance with the Second Schedule.] 5 [(2) The Board on receipt of the undertakings and the registration fees as referred to in sub-regulation (1), may grant registration to the sub- account.] (3) A sub-account granted registration in accordance with sub-regulation (2) of this regulation shall be deemed to be registered as a Foreign Institutional Investor with the Securities and Exchange Board of India for the limited purpose of availing of the benefits available to Foreign Institutional Investors under section 115 AD of Income Tax Act,1961, (43 of 1961). -------------- Notes:- 1. Substituted by the SEBI (Foreign Institutional Investors) (Amendment) Regulations, 2008, w.e.f.22-5-2008. Prior to substitution clauses (a) , (b) and proviso to clause (b) of the regulation 13(1) read as under: ` (a) the applicant is an institution or fund or portfolio established or incorporated outside India and proposes to make investment in India; (b) the applicant is a broad based fund or proprietary fund or a foreign corporate or individual ; Provided that a non-resident Indian or an overseas corporate body registered with Reserve Bank of India shall not be eligible to invest as sub-account or as foreign institutional investor. 2. Clause (bb) renumbered as (b) by the SEBI (Foreign Institutional Investors) (Amendment) Regulations, 2008, w.e.f.22-5-2008. 3. Substituted by the SEBI (Foreign Institutional Investors) (Second Amendment) Regulations, 2006, w.e.f. 21-8-2006. Earlier it was Inserted by the SEBI (Foreign Institutional Investors) (Third Amendment) Regulations, 1998, w.e.f.30-6-1998. Prior to its substitution it read as under: The foreign institutional investor through whom the application for registration is made, has submitted undertakings that the sub-account fulfils the criteria referred to in this sub-regulation in a manner specified in para 2 of Annexure B to Form A of the First Schedule . 4. Prior to omission, Clause (ee), inserted by the SEBI (Foreign Institutional Investors) Amendment Regulations, 2000, w.e.f. 29-2-2000, read as under. In case the sub-account is a foreign corporate or individual, the foreign institutional investor, through whom the application for registration is made, shall furnish information and undertaking as specified in para 3 of Annexure B to Form A of the First Schedule; 5. Substituted by the SEBI ((Foreign Institutional Investors) (Third Amendment) Regulations, 1998 w.e.f. 30-6-1998.