Sebi permits FIIs to invest in India using complex multi-fund models: Media Report

Posted By: Religare
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Sebi permits FIIs to invest in India using complex multi-fund models
Sebi has allowed overseas entities using complex multi-fund structures to invest in India, if they need to use such models due to regulations in their home country and they are ready to provide details of actual beneficiary of funds, reported PTI.

Fearing possible round-tripping or money laundering activities, the stock market regulator, in 2010, had barred foreign entities using complex structures such as multi-class share vehicle (MCV) or protected cell companies (PCCs).

In a circular issued yesterday, Sebi said that an FII seeking registration in India would not be considered to have an "opaque" structure if it is required by its regulator or under any law to ring fence its assets and liabilities from other funds/sub-funds.

This would be subject to certain conditions, including the overseas entity being regulated in its home jurisdiction, each fund/sub-fund of the entity satisfying broad based criteria, and the entity giving an undertaking to provide information regarding its beneficial owners as and when sought by Sebi, said the PTI report.

Dion Global Solutions Ltd.

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