The capital markets regulator Securities Exchange Board of India (Sebi) on May 30, 2024, released a master circular for foreign portfolio investors (FPIs).
This master circular had subsumed an earlier circular dated August 24,2023 which deals with FPIs (foreign portfolio investors) that are exempt from additional disclosure requirements.
Now, the latest circular dated August 1, 2024 mentions that university funds and university related endowments will not be required to make the additional disclosures subject to compliance with certain conditions.
The circular states that university funds and endowments are not supposed to make additional disclosures when they fulfil the following conditions.
These are the conditions as per latest Sebi circular:
I. Indian equity is less than 25 percent of global AUM
II. Global assets under management (AUM) is more than equivalent to ₹10,000 crore in Indian currency.
III. Appropriate return/ filing to the respective tax authorities in their home jurisdiction to evidence the nature of a non-profit organisation exempt from tax.
This effectively means that university funds and endowments are exempt from making additional disclosures so long as the above-mentioned conditions are met.
The additional disclosure requirements are mentioned in Para1(xiii)of Part C of the FPI Master Circular.
“Granular details of all entities holding any ownership, economic interest, or exercising control in the FPI, on a full look through basis, up to the level of all natural persons, without any threshold, will be provided by FPIs which fulfil any of the criteria mentioned below to the respective DDPs in the format specified in the above referred SOP,” reads the master circular.
“ A) FPIs holding more than 50 per cent of their Indian equity Assets Under Management (AUM) in a single Indian corporate group. B) FPIs that individually, or along with their investor group(in terms of Regulation 22(3) of the FPI Regulations), hold more than ₹25,000 crore of equity AUM in the Indian markets,” reads further.
