MANU/SFII/0003/2019

Ministry : Securities and Exchange Board of India

Department/Board : Investment Management Department

Circular No. : SEBI/HO/IMD/DF2/CIR/P/2019/155

Date : 16.12.2019

Notification/ Circulars Referred : No. SEBI/LAD-NRO/GN/2019/37 dated September 23, 2019 MANU/SREG/0039/2019

Citing Reference:
No. SEBI/LAD-NRO/GN/2019/37 dated September 23, 2019 MANU/SREG/0039/2019  Referred

All Mutual Funds (MFs)/
Asset Management Companies (AMCs)/
Trustee Companies/Boards of Trustees of Mutual Funds

Sir / Madam,

Management and advisory services by AMCs to Foreign Portfolio Investors

1. Consequent to the notification of SEBI (Foreign Portfolio Investors) Regulations, 2019 (hereinafter referred as "FPI Regulations"), Regulation 24 (b) of SEBI (Mutual Funds) Regulations, 1996 (hereinafter referred as "MF Regulations") pertaining to "Restrictions on business activities of the asset management company" was amended and notified in the Gazette having no. SEBI/LAD-NRO/GN/2019/37 dated September 23, 2019.

2. In this regard, the following has been decided:

i. AMCs may provide management and advisory services in terms of Regulation 24(b) of MF Regulations to FPIs falling under the following categories of FPIs as specified in FPI Regulations:

a. Government and Government related investors such as central banks, sovereign wealth funds, international or multilateral organizations or agencies including entities controlled or at least 75% directly or indirectly owned by such Government and Government related investor(s);

b. Appropriately regulated entities such as pension funds, insurance or reinsurance entities, banks and mutual funds;

c. Appropriately regulated FPIs wherein (a) or (b) above hold more than 50% of shares/units.