Sebi simplifies process of registration for certain FPI categories

To ease onboarding for FPIs and reduce duplication of information, Sebi on Tuesday proposed an abridged version of Common Application Form (CAF) that only requires information unique to the applicant.

Further, the rest of the information will be auto-filled from the depository's records or certain fields will be disabled if not needed.

Also, the applicants will need to confirm that the previously provided information remains unchanged, Sebi proposed in its consultation paper.

The regulator observed that in case of certain categories of Foreign Portfolio Investor (FPI) applicants like multiple funds under an Investment Manager (IM), sub-funds of a master fund, or schemes of insurance companies, much of their relevant information is already captured in depositories' CAF module, which can be leveraged without seeking the same from said applicants.

 

Further, there are certain fields which are exclusive to individual FPI applicants and hence will not be applicable to the applicants belonging to these categories, it added.

Accordingly, in order to save significant time and efforts for such FPI applicants, in terms of reviewing the application and signing the CAF, it has been proposed to seek only such information that is unique to such applicants.

In case of onboarding applicants belonging to certain categories, Sebi has proposed an abridged version of CAF having only those fields that are unique to such applicants should be used.

The remaining fields should either be auto-populated from the information available in the depository system or should be disabled, as applicable.

"While leveraging on the available information, an explicit consent to use the available information and confirmation that all the details other than those mentioned in the abridged version of CAF remain unchanged, shall be obtained from the applicant," Sebi proposed in its consultation paper.

After receiving the information from the applicant, custodians should update the details in CAF against the registration number of the applicant for future reference purposes and ensure that the CAF Module in the depository system reflects complete information (information filled in by applicants and those that are auto-populated from system) and seamless fetching of the same is possible.

"There has been feedback that an abridged version of CAF, having only those fields which are unique to the aforesaid applicants, shall help save significant time and efforts in terms of reviewing the application and signing a reduced number of pages," Sebi said.

The Securities and Exchange Board of India (Sebi) has sought public comments till October 15 on the proposals.
 

Mixed-bag market debut for trio of new listings
 

The trio of new listings delivered a mixed performance on day one on Tuesday, with Western Carriers' shares slipping 7.3 per cent below its issue price. In contrast, Northern Arc and Arkade Developers soared more than 20 per cent each. The three IPOs had garnered immense investor interest, attracting bids worth over Rs 1 trillion. Shares of real estate developer Arkade Developers ended at Rs 166, up Rs 38, or 30 per cent over its issue price and that of non-banking financial firm Northern Arc Capital finished at Rs 324, up Rs 61, or 23 per cent. Mean­while, shares of logistics Western Carriers ended at Rs 159.5, down Rs 12.6, or 7.3 per cent over its issue price. Arkade and Northern Arc’s IPOs over 100 times more demand than shares on offer, while Western Carriers’ IPO was subscribed nearly 30 times.

KRN Heat raises Rs 100 cr from anchor investors
 

KRN Heat Exchanger and Refrigeration Ltd on Tuesday said it has raised Rs 100 crore from anchor investors, a day before its initial share-sale opening for public subscription. WhiteOak Mutual Fund, Bandhan Mutual Fund, Saint Capital Fund, Ashoka India Equity Investment Trust Plc, and Holani Venture Capital Fund are among the anchor investors. The company has allotted 4.5 million equity shares to 10 funds at Rs 220 apiece, which is also the upper end of the price band.

This aggregates the transaction size to Rs 100.10 crore, according to a circular uploaded on the BSE website.