Notification of SEBI ( Foreign Institutional Investors) (Amendment) Regulations, 2002

PRESS RELEASE

PR No.:279/2002
December 19 ,2002

Sub : Notification of SEBI ( Foreign Institutional Investors) (Amendment) Regulations, 2002.

The SEBI (Foreign Institutional Investors) Regulations, 1995 were framed to register and regulate the functioning of Foreign Institutional Investors. They have been further amended by SEBI (Foreign Institutional Investors) (Amendment) Regulations, 2002 which have been notified in the Official Gazette on December 10, 2002 vide S.O. No. 1291(E). The amendment proposes to further rationalize the registration process of Foreign Institutional Investors. The gist of the amendment are as follows :

a) Alongwith the application form , it is sufficient if a certified copy of the relevant clauses or articles of the memorandum and Articles of Association of the applicant or the agreement authorizing the applicant to invest on behalf of its clients is enclosed. Earlier the entire Memoradum and Articles and the Investment Management Agreement or other agreement were required to be filed with the application.

b) Copies of the audited financial statement and annual report for the last one year, not being less than 12 months are required to be filed with the application now. The requirement of filing these documents pertaining to the last five years is dispensed with.

c) Earlier the documents evidencing the registration of the applicant with a Securities Commission or self regulatory organization or any other regulatory authority were required to be filed with the application. After the present amendment, it would be sufficient if a declaration is made by the applicant with the requisite particulars.

d) Instead of filing a copy of the agreement with the domestic custodian, it would suffice, if a declaration is made by the applicant that it has entered into a custodian agreement together with details of the domestic custodian.

e) The registration fee has been reduced from US $ 10,000/- to US $ 5,000/-.

The amendment notification has been posted in SEBI website at sebi.gov.in.