SEBI Extends Reporting Deadlines For Foreign Portfolio Investors, Offers Greater Flexibility

SEBI has revamped reporting norms for Foreign Portfolio Investors (FPIs), offering them increased flexibility. The changes categorize material changes into Type I and Type II, requiring FPIs to report within seven working days for Type I and 30 days for Type II changes, with supporting documents. \r

Designated Depository Participants (DDPs) must scrutinize reported changes, especially Type I, reassessing FPI eligibility. Failure by FPIs to promptly inform DDPs mandates DDPs to notify SEBI within two days. These alterations align with recent amendments to the SEBI (Foreign Portfolio Investors) Regulations, 2019, enhancing FPI operational flexibility post-registration expiration. \r

Guidelines also address disposal of securities held beyond stipulated timeframes, ensuring compliance with KYC and AML/CFT requirements.