In its circular, Sebi said that FPIs are required to report Type I changes within seven working days and provide supporting documents within 30 days and Type II changes require notification and supporting documents within 30 days.
At present, FPIs get up to seven working days to submit information to the watchdog with regard to any material change in its structure or ownership or control or investor group.
Some of the Type 1 material changes include change of jurisdiction; name change on account of acquisition, merger, demerger, and ownership. Type II is any material changes other than those considered as ‘Type I’.
Sebi said that Designated Depository Participants (DDPs) need to examine all material changes informed by the FPIs and reassess the eligibility of the FPI, including requiring FPIs to seek fresh registration. However, the DDP needs to mandatorily require the FPI to seek fresh registration in case of ‘Type I’ material changes. “Where there is a delay in intimation of material change by the FPI to the DDP, the DDP shall, as soon as possible but not later than two working days, inform all such cases to Sebi for appropriate action, if any, along with the reason for the delay,” the regulator said.