 "sebi")
Markets regulator Sebi on Tuesday came out with guidelines for relocation of foreign funds to the International Financial Services Centre (IFSC).
For relocation, a Foreign Portfolio Investor (FPI) or its wholly-owned special purpose vehicle may approach its Designated Depository Participants (DDP) for approval of a "one-time 'off-market' transfer of its securities to the 'resultant fund'," Sebi said in a circular.
Sebi noted that tax incentives are provided for relocating foreign funds to IFSC under the Finance Act, 2021, in order to make the IFSC in GIFT City, Gujarat, a global financial hub.
DDPs after appropriate due diligence may accord its approval for a one-time off-market transfer of securities for such relocation, Sebi said.
Relocation request will imply that the FPI has deemed to have applied for surrender of its registration.
"The 'off-market' transfer shall be allowed without prejudice to any provisions of tax laws and FEMA," Sebi said.
The country's first IFSC in the country has been set up at the Gujarat International Finance Tec-City (GIFT) in Gandhinagar.
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