INDIA INX

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Regulatory Framework
a. SEBI registered FPIs proposing to operate in IFSC, shall be permitted, without undergoing any additional documentation and/or prior approval process.
Under the SEBI FPI Regulations, 2014, Foreign Institutional Investors (FIIs), Sub Accounts (SA) and Qualified Foreign Investors (QFIs) were merged into a single category, referred to as FPIs.

b. In case of participation of FPIs in IFSC, a trading member of the recognized stock exchange in IFSC, may rely upon the due diligence process already carried out by a SEBI registered intermediary during the course of registration and account opening process in India.

c. "In case of participation of an EFI, not registered with SEBI as an FPI, but desirous of operating in IFSC, a trading member of the recognized stock exchange in IFSC may carry out the due diligence on its own or it may rely upon the due diligence carried out by a bank, which is permitted by RBI to operate in IFSC, during the account opening process of an EFI".

d. FPIs, who presently operate in Indian securities market and propose to operate in IFSC also, shall be required to ensure clear segregation of funds and securities. Custodians shall, in turn, monitor compliance of this provision for their respective FPI clients. Such FPIs shall keep their respective custodians informed about their participation in IFSC.

e EFIs shall abide by all the applicable Indian laws viz. Rules/Regulations/Circulars/Guidelines etc. in IFSC issued by the Government of India/RBI/SEBI or any other authority of law, from time to time.

f. All registered FPIs are permitted to participate in commodity derivatives contracts traded in stock exchanges in IFSC subject to following conditions:-

  • The participation would be limited to the derivatives contracts in non-agricultural commodities only.
  • Contracts would be cash settled on the settlement price determined on overseas exchanges.
  • All the transactions shall be denominated in foreign currency only.