Investments by FPIs in Hybrid Securities - SEBI - IMD/FPIC/CIR/P/2017/121

CIRCULAR IMD/FPIC/CIR/P/2017/121 November 15, 2017 To All Foreign Portfolio Investors through their designated Custodians of Securities The Depositories (NSDL and CDSL) Sir / Madam, Sub: Investments by FPIs in Hybrid Securities 1. This has reference to the daily FPI net investment data and the FPI Assets Under Custody (AUC) data being disseminated by the depositories (NSDL and CDSL). Presently, FPI investments are classified as either debt or equity depending on the type of the security in which the FPIs transact. 2. FPIs are permitted to invest in REITs and InvITs, which are classified as hybrid securities and presently, the said investments are not reflected in the daily FPI net investment data or the monthly/fortnightly FPI AUC data. 3. In order to capture FPI investment data in hybrid securities, a third category termed as Hybrid Security shall be created for the purpose of capturing and disseminating FPI investment data in hybrid securities. 4. The depositories (NSDL and CDSL) shall put in place the necessary systems for the daily reporting by the custodians of the FPIs and shall also disseminate on their websites, the AUC of the FPIs in debt, equity and hybrid securities. This circular shall come into effect immediately. This 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, PIYOOSH GUPTA Chief General Manager Tel No.: 022-26449150 Email: [email protected]