AMCs are allowed to provide management & advisory services to all FPIs operating from IFSCs: SEBI

Circular no. SEBI/HO/IMD/IMD-POD1/P/CIR/2023/005, dated 06.01.2023

Earlier, SEBI vide circular no. SEBI/HO/IMD/DF2/CIR/P/2019/155 dated December 16, 2019 had specified certain categories of Foreign Portfolio Investors (FPIs) to which the Asset Management Companies (AMCs) can provide management & advisory services in terms of Regulation 24(b) of SEBI (Mutual Funds) Regulations, 1996.

Accordingly, AMCs can provide management and advisory services to FPIs operating from International Financial Services Centres (IFSC) and regulated by International Financial Services Centres Authority (IFSCA) and falling under the categories specified in the aforementioned SEBI circular.

Now, the SEBI in consultation with IFSCA and based on the requests received from AMCs has permitted AMCs to provide management and advisory services to all Foreign Portfolio Investors operating from International Financial Services Centres (IFSCs) subject to certain conditions. The conditions are as follows –

(a) Such FPI shall be allowed to invest in mutual fund schemes other than the schemes in the category of “thematic” as defined in SEBI Circular No. dated October 6, 2017. ‘Thematic’ scheme means an open-ended equity scheme investing in a particular sector/following a particular theme.

(b) For investment in equity and equity derivative securities listed on recognized stock exchanges in India, such FPI shall not take contra-position for a period of six months from the date of purchase or sale of such securities.

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