%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(7).png "SEBI Issued Guidelines to Relax Timelines for FPIs to Make Material Event Disclosures")
- Material changes have been categorized into two types:
- Type I: Critical changes that render the FPI ineligible for registration, require FPI to seek fresh registration, render FPI ineligible to make fresh purchase of securities, among others. Such changes need to be informed within seven working-days of the occurrence of the change and the supporting documents (if any) shall be provided within 30 days of such change.
- Type II: Any material changes other than those considered as ‘Type I’, shall be informed and supporting documents (if any) shall be provided by FPIs as soon as possible and within 30 days of such change.
- In case of a delay in intimation of material change by the FPI to the Designated Depository Participants (DDPs), the DDP shall inform all such cases to SEBI for appropriate action, if any, along with reason for delay.
- SEBI has eased the rules for FPIs’ disposal of securities after their registration has expired.
- The FPI can either choose to renew their registration for another three years by paying a fee to the Designated Depository Partner (DDP) or, if it fails to reactivate its registration, will need to dispose off its securities within 180 days from the expiry of the 30 days prescribed for reactivation of its registration.
Question:
1 What is the time frame for Foreign Portfolio Investors (FPIs) to inform about Type I material changes?
- A) Within 3 working-days of the occurrence of the change
- B) Within working-days of the occurrence of the change
- C) Within 7 working-days of the occurrence of the change
- D) Within 30 working-days of the occurrence of the change
