Theranautilus Secures $1.2 Mn in Seed...
19 Nov 2024
The market regulator has amended the Master Circular for Foreign Portfolio Investors (FPIs) to relax timelines for disclosure of material changes and events.
Type 1 material changes needs to be now informed within seven days and supported documents to be provided within 30 days. Any other changes, which are classified as Type II changes, will need to be informed within 30 days with supporting documents if any.
The Securities and Exchange Board of India (Sebi) issued the circular on June 5, after amending the Sebi (Foreign Portfolio Investors) Regulations on June 3.
Type I category includes critical material changes that render the FPI ineligible for registration, require FPI to seek fresh registration, render FPI ineligible to make fresh purchase of securities, impacy any privileges (e.g. QIB) available or granted to the FPI under the extant regulatory framework and impact any exemptions available or granted to the FPI under the extant regulatory framework.
SAIF Partners and Peak XV are the largest shareholders in the company, with 23.37 percent and 15.66 percent stake, respectively.
The circular listed 14 instances that will be considered Type 1 category material changes, including change of jurisdiction; name change on account of acquisition, merger, demerger, restructuring, change of ownership/control; acquisition/merger/demerger resulting in cessation of existence of FPI; restructuring of legal form/sub-category (e.g. Corporate to trust); change in regulatory status of the FPI (e.g. regulated to unregulated fund); change in compliance status of jurisdiction of FPI/BO in terms of Regulation 4(d), 4(e) or 4(f) of the FPI Regulations, 2019; reclassification of the FPI from Category I to Category II; addition of FPI(s) to any existing/new investor group(s); FPIs obtaining registration under Category-I on support of an Investment Manager (IM) and such IM being either removed (temporarily/permanently) or losing its Category I eligibility; breach of prescribed threshold for aggregate contribution of NRIs, OCIs and RIs; and any penalty, pending litigation or proceedings, findings of inspections or investigations for which action may have been taken or is in the process of being taken by an overseas regulator.
If there is any delay in reporting the material changes by the FPI to the DDP, the DDP is required to report this matter to Sebi as soon as possible and not later than two days, along with the reason for the delay.
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