Timelines For Disclosure Of Material Changes By Fpis Revised

SEBI had specified the timelines for disclosure of certain material changes/events through its Master Circular for Foreign Portfolio Investor, Designated Depository Participants and Eligible Foreign Investors dated May 30, 2024. Subsequently, SEBI has notified SEBI (Foreign Portfolio Investors) (Amendment) Regulations, 2024 on June 03, 2024, inter alia, to relax the timelines for disclosure of material changes/events and other obligations by Foreign Portfolio Investors (FPIs).

Pursuant to the amendments, ‘Type I’ material changes shall be informed by the FPIs as soon as possible and within seven working days of the occurrence of the change and supporting documents, if any, shall be provided within 30 days of such change. ‘Type II’ material changes i.e. changes other than those considered as ‘Type I’ material changes shall be informed and supporting documents shall be provided by FPIs as soon as possible and within 30 days of such change. The amendment enumerates the material changes that qualifies as ‘Type I’ material changes and the same include critical material changes that:

1. render the FPI ineligible for registration
2. require FPI to seek fresh registration
3. render FPI ineligible to make fresh purchase of securities
4. impact any privileges (e.g. QIB) available or granted to the FPI under the extant regulatory framework
5. impact any exemptions available or granted to the FPI under the extant regulatory framework.