Aug 27, 1998
Press Releases
Press Release
August 27 , 1998
Ref.No.PR 237/98
Revised procedure for grant of registration of
sub-accounts of registered Foreign Institutional Investors.
FIITC DEPARTMENT
With a view to expedite the grant of registration to sub-accounts, the process of registration has been simplified. Henceforth, registered Foreign Institutional Investors would be required to submit only the details of the sub account along with an undertaking and a registration fee of US$ 1000. No other document or enclosures would be necessary. The SEBI (Foreign Institutional Investors) Regulations, 1995 have been amended on June 30, 1998 so as to incorporate the revised procedure [ refer regulation 12 (3) ]. The format for submitting sub account details and undertaking is available as Annexure B to Form A of SEBI (Foreign Institutional Investors) Regulations, 1995 ( copy enclosed ).
The details of the revised procedure are mentioned below :
1. Documents to be submitted :
The registered FII would submit the details and undertaking in respect of each sub-account for which it seeks registration in the format given as Annexure B to Form A of SEBI (Foreign Institutional Investors) Regulations, 1995. This format is also available at the SEBI website : www.sebi.gov.in
2. Registration Fee:
Each sub account application would be accompanied by a registration fee of US$ 1000 by means of a bank draft / bankers cheque favoring " Securities and Exchange Board of India" payable at Mumbai. A separate bankers cheque / draft may be submitted in respect of each sub-account application.
3. Validity of Registration:
The sub-account registration would have the same validity as that of the FII under which it is registered. In other words, at the time of renewal of registration of a FII, all the underlying sub-accounts would also be required to seek renewal of registration, irrespective of the date of initial registration of the sub-account. For grant of renewal, the sub account details and undertaking as mentioned in Annexure B of SEBI (FII) Regulations, 1995 would have to submitted, along with renewal fee of US $ 1,000.
4. Grant of Registration:
It is proposed that in respect of all complete application for grant of registration to sub-accounts, the registration would be granted within 3 working days of receipt of application at SEBI. Applications which are incomplete, in-eligible or not accompanied by the requisite fee would be returned to the applicants.
5. Verification of Application:
With a view to expedite the grant of registration to sub-accounts, it is proposed that the Foreign Institutional Investors would conduct the due diligence exercise at their end to verify the eligibility of the sub-accounts. SEBI would grant registration merely on the basis of the undertaking given by the FII. In case any details are subsequently found to be incorrect, the FII would become liable for appropriate action by SEBI.
GENERAL:
The SEBI (Foreign Institutional Investors) Regulations, 1995 have been amended from time to time so as to increase the scope of investments by FIIs and to simplify the registration procedure. The latest copy of the Regulations is available at SEBI website : www.sebi.gov.in.
Encl.: As above