SEBI (FPI) (Second Amendment) Regulations, 2021

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Dec 31, 2021

SEBI (FPI) (Second Amendment) Regulations, 2021

SEBI has, by way of Notification dated October 26, 2021 amended the SEBI (FPI) Regulations, 2019 to provide that resident Indian, other than individuals, may be constituents of the applicant FPI, subject to the following conditions:

i. The applicant FPI is an AIF setup in the international financial services centres, and regulated by the International Financial Services Centres Authority;

ii. Such resident Indian, other than individuals, is a sponsor or manager of the applicant FPI; and

iii. The contribution of such resident Indian, other than individuals, must be up to: (a) 2.5% of the corpus of the applicant or US$ 750,000 (whichever is lower), in case the applicant FPI is a category I or category II AIF; or (b) 5% of the corpus of the applicant or US$ 1.5 million (whichever is lower), in case the applicant is a category III AIF.

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