Revised Landscape in India for Foreign Portfolio Investments

 

Thursday, January 15TH, 2015

1ST SESSION (WEBINAR): 8:30 AM - 9:45 AM (IST)

2ND SESSION (ROUND TABLE + WEBINAR): 7:00 PM - 8:15 PM (IST)

 

MUMBAI – BKC AUDITORIUM, NISHITH DESAI ASSOCIATES, 2ND FLOOR, 3, NORTH AVENUE, MAKER MAXITY, BANDRA-KURLA COMPLEX, MUMBAI – 400 051, INDIA 

INTRODUCTION

In a bid to simplify and rationalize the foreign portfolio investment regime, the Securities and Exchange Board of India (“SEBI”) had introduced the SEBI (Foreign Portfolio Investors) Regulations, 2014 (“FPI Regulations”).

The FPI Regulations replaced the SEBI (Foreign Institutional Investors) Regulations, 1995 and significantly revises the regulation of foreign portfolio investments both direct as well as by use of derivative instruments. FPI Regulations introduced a risk-based approach towards investor Know Your Customer (KYC) requirements and ushered the end of the sponsored sub accounts structure.

The key issues which foreign portfolio investors currently deal with include:

  • Eligibility criteria concerning dealing in offshore derivative instruments (including the recent SEBI Circular No. 20 of November 24, 2014 on conditions for issuance of offshore derivative instruments)
  • Clubbing of investment limits (across direct participation and synthetic exposures through ODI) and emerging issues;
  • Determining the ‘broad based’ criteria (including issues such as participation of Non-Resident Indians as investors);
  • Structuring pooling vehicles and economics for funds with India-focused portfolio allocations.

Join us for a webinar where our panel of experts discuss the various legal, tax, and commercial implications of these issues and other recent developments in the FPI Regulations.

Focus Area

  • Recent developments under the SEBI (Foreign Portfolio Investors) Regulations, 2014.
  • SEBI Circular on Offshore Derivative Instruments.
  • Legal, tax and commercial implications of the revised landscape.

Speakers

KISHORE JOSHI

Kishore Joshi heads the Regulatory Practice at Nishith Desai Associates. He has over two decades of experience in advising clients on securities and exchange control laws. He handles matters on various aspects related to foreign portfolio investors (FPIs) including the broad-based criteria, eligibility to trade P-Notes and the participation of various investor categories under the FPI route. Kishore has interacted extensively with the securities and exchange control regulator and has made numerous representations seeking reform in the law. In addition, he regularly advises clients on fund investments, issues related to corporate and regulatory laws. He has made several presentations on inbound and outbound investments. Kishore holds a Bachelor’s degree in law from Mumbai University and is a member of the Bar Council of Maharashtra & Goa.

RICHIE SANCHETI

Richie Sancheti leads the Funds Practice Group at Nishith Desai Associates and is based in Mumbai. With a strong funds background, Richie advises on optimum structures for setting up onshore and offshore investment funds. He advises fund managers in connection with the formation, carry allocation program and governance of private funds. 

Richie also actively assists range of fund managers with private equity, hedge, venture capital and other investment strategies in negotiating fund terms with institutional investors. Richie is also a member of the firm’s international tax and private equity investment practice groups and advises clients on matters including private equity transactions. 

ADHITYA SRINIVASAN

Adhitya Srinivasan is a senior member of the Fund Formation practice at the firm and is actively involved in the firm's thought leadership on the private equity side.

With a strong focus on private equity funds and hedge funds, he has advised several international and domestic clients on legal, regulatory and tax issues as well as on fund governance best practices and fund economics. He frequently interacts with the securities regulator and custodians and constantly strives to evolve innovative solutions. His expertise includes the tax efficient structuring and negotiation of investments by LPs into funds. With a strong practice base on the fund formation side, he also regularly advises clients on the FPI Regulations.

Flow of the session

 1st Session

8:00 AM TO 8:30 AM (IST):

Registration

8:30 AM TO 9:15 AM (IST):

Session: Revised Landscape in India for foreign portfolio investments:

a) General Framework of the FPI Regulations;

b) Participation of non-resident Indians (NRIs) in FPIs;

c) Eligibility to issue/subscribe to offshore derivative instruments;

d) Recent development on the clubbing of investment limits (SEBI Circular No. 20 of 2014 dated November 24, 2014 on the new conditions for issuance of offshore derivative instruments);

e) Impact of the FPI Regulations on India focused hedge funds.

9:15 AM TO 9:45 AM (IST):

Q & A

2nd Session

6:30 PM TO 7:00 PM (IST):

Registration

7:00 PM TO 7:45 PM (IST):

Session: Revised Landscape in India for foreign portfolio investments:

a) General Framework of the FPI Regulations;

b) Participation of non-resident Indians (NRIs) in FPIs;

c) Eligibility to issue/subscribe to offshore derivative instruments;

d) Recent development on the clubbing of investment limits (SEBI Circular No. 20 of 2014 dated November 24, 2014 on the new conditions for issuance of offshore derivative instruments);

e) Impact of the FPI Regulations on India focused hedge funds.

7:45 PM TO 8:15 PM (IST):

Q & A