Sebi’s new rule for FPIs to dispose securities post-expiry of registration
As on June 30, 2023, there were 55 FPIs, whose registration has expired, holding securities valued at about Rs3,300-cr in their demat accounts
image for illustrative purpose
New Delhi: To facilitate ease of doing business for Foreign Portfolio Investors, markets regulator Sebi has proposed allowing such investors to dispose of securities lying in their demat accounts after the expiry of their registration. Under the current rule, Foreign Portfolio Investors (FPIs) are required to have a valid registration as long as they hold securities in India. In order to keep their registration valid, they need to pay the registration fee for every block of three years.
Non-payment of fees lead to FPI's registration expiring. Further, current rules do not provide for liquidation of securities by FPI after the expiry of their registration and the securities held by such FPI remain frozen in their demat accounts.
As on June 30, 2023, there were 55 FPIs, whose registration has expired, holding securities valued at about Rs3,300 crore in their demat accounts, Sebi noted.
