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Press Release
January 16,  2001
Ref.No.PR 15/2001

Sub :  Grant of registration to  domestic fund managers as 
deemed Foreign Institutional  Investors

With a view to avoid discrimination between Indian and foreign fund managers, the SEBI (Foreign Institutional Investors) Regulations 1995  (Regulations) were amended on February 29, 2000 to permit domestic fund managers to also manage foreign funds. Consequently Indian portfolio managers and approved asset management companies who are registered portfolio managers can get a deemed Foreign Institutional Investor (FII) status under the Regulations.  But this will be only for the purpose of managing the foreign funds. The management of foreign funds would involve procurement of FEMA approval (for convertibility of funds), appointment of domestic custodian and designated bank, daily reporting of transactions etc. As these requirements are stipulated in the above Regulations only, the entities have been granted registration as deemed FII under the Regulations. It may be highlighted that these entities can only manage funds raised abroad by authorised entities / funds and cannot make proprietary investments through this route. In other words, these entities have  to fulfil the obligations cast on them under the Regulations such as appointment of designated bank and custodian, reporting of trades to SEBI and RBI etc. but cannot make proprietary investments. On the other hand, FIIs can invest their own funds also which facility is not available to Indian portfolio managers.

Till date the following entities have been granted registration as deemed FIIs :

S.No. Name
1 Anand Rathi Securities Pvt. Ltd.
2 Munoth Financial Services Ltd.
3 Reliance Capital Asset Management Ltd.
4 First Global Stock Broking Pvt. Ltd.

Besides, the following applications are currently under process under this category :

1. UTI Investment Advisory Services Ltd.
2. Dundee Investment Research Pvt. Ltd.