Markets regulator Sebi today amended the guidelines for eligible foreign investors looking to operate at the International Financial Services Centre (IFSC).
Now, a trading member of a stock exchange in the IFSC can carry out the due diligence for an eligible foreign investor (EFI), who is not registered with the regulator as a Foreign Portfolio Investor (FPI). The provision has been made for the account opening process of an EFI.
Sebi said the 'guidelines for participation/ functioning of EFIs and FPIs in IFSC' have been amended after discussions with various market participants.
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"In case of participation of an EFI, not registered with Sebi as an FPI, but desirous of operating in IFSC, a trading member of the recognised stock exchange in IFSC may carry out the due diligence on its own or it may rely upon the due diligence carried out by a bank, which is permitted by RBI to operate in IFSC, during the account opening process of an EFI," Sebi said in a circular.
An IFSC is functioning in Gujarat.
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