INSUBCONTINENT EXCLUSIVE:
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