New Delhi: Markets watchdog Sebi on Thursday said certain overseas government agencies and their related entities will be exempted from clubbing of investment limit that is applicable for foreign portfolio investors.
The exemption would be applicable where the Indian government has entered into agreements or treaties with overseas governments or there is an order.
Issuing a circular on exemption from clubbing of investment limit for foreign government agencies and its related entities, Sebi cited a rule under the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 regarding Investments by Foreign Portfolio Investors (FPIs).
In line with these rules, Sebi said “certain foreign government agencies and its related entities are exempt from clubbing of investment limit requirements and other investment conditions either by way of an agreement or treaty with other sovereign governments or by an order of the central government”.
On December 19, the regulator amended the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 and omitted a regulation.
The particular regulation pertained to cases where the government enters into agreements or treaties with other sovereign governments and where such agreements or treaties specifically recognise certain entities to be distinct and separate. In such cases, Sebi may, during the validity of such agreements or treaties, recognise them as such, subject to conditions as may be specified by it.
Source: Economic Times