CIRCULAR
SEBI/HO/IMD/IMD-POD1/P/CIR/2023/005 January 06, 2023
All Mutual Funds
All Asset Management Companies (‘AMCs’)
All Trustee Companies/ Boards of Trustees of Mutual Funds
Sir / Madam,
Subject: Management and advisory services by AMCs to Foreign Portfolio
Investors
1. SEBI Circular No. SEBI/HO/IMD/DF2/CIR/P/2019/155 dated December 16,
2019 specifies the categories of Foreign Portfolio Investors (FPIs), to which the
AMCs may provide management and advisory services in terms of Regulation
24(b) of SEBI (Mutual Funds) Regulations, 1996. Accordingly, AMCs may
provide management and advisory services to FPIs operating from International
Financial Services Centres (IFSC) and regulated by International Financial
Services Centres Authority (IFSCA) and falling under the categories specified in
the aforementioned SEBI circular.
2. In consultation with IFSCA and based on the requests received from AMCs, it
has been decided that, AMCs may also provide management and advisory
services to FPIs operating from IFSC and regulated by IFSCA, not falling under
the categories of FPIs specified under para 2(i) of SEBI Circular No.
SEBI/HO/IMD/DF2/CIR/P/2019/155 dated December 16, 2019, subject to the
following:
2.1. Such FPI shall be allowed to invest in mutual fund schemes other than the
schemes in the category of “thematic” as defined in SEBI Circular No.
SEBI/HO/IMD/DF3/CIR/P/2017/114 dated October 6, 2017.
2.2. For investment in equity and equity derivative securities listed on recognized
stock exchanges in India, such FPI shall not take contra-position for a period
of six months from the date of purchase or sale of such securities.
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3. This circular is issued in exercise of powers conferred under Section 11 (1) of
the Securities and Exchange Board of India Act, 1992, read with the provisions
of Regulation 77 of SEBI (Mutual Funds) Regulations, 1996, to protect the
interest of investors in securities and to promote the development of, and to
regulate the securities market.
Yours faithfully,
Manaswini Mahapatra
General Manager
Investment Management Department
Tel: 022 - 26449375
Email: manaswinim@sebi.gov.in
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