India's market regulator Securities and Exchange Board of India (Sebi) has made things a little easier for foreign investors who invest in Indian stock markets. These investors, known as Foreign Portfolio Investors (FPIs), now have more time to report certain changes in their information to Sebi.
Previously, FPIs had to report any major change within seven working days. Now, Sebi has categorized these changes into two groups:
Type I: These are significant changes that might affect the investor's eligibility to invest in India. Examples include changes in the country where the investor is registered, a merger with another company, or a change in ownership. For these changes, FPIs still need to report within seven working days, but they now have 30 days to submit any necessary documents.
Type II: These are all other changes that are considered less significant. For example, a minor change in the investor group might fall under this category. FPIs now have 30 days to report these changes and submit any documents.
This change gives FPIs more flexibility in reporting and reduces some of the pressure to meet tight deadlines. It's important to note that there are still consequences for not reporting changes on time. If an FPI delays informing a custodian (called a Designated Depository Participant or DDP) about a change, the DDP is required to report the delay to Sebi within two working days.
