Circular No. SEBI/HO/AFD/AFD-PoD-3/P/CIR/2024/130, Dated 26.09.2024
Earlier, SEBI notified SEBI (Foreign Venture Capital Investors) Regulations, 2024. Now, in order to ensure smooth transition to the amended FVCI regime and operationalise the amended provisions of the FVCI Regulations, SEBI has decided to issue necessary guidance in the form of operational guidelines. The provisions of this circular shall come into force with effect from 01.01.2025.
The key highlights of the guidelines include:
(a) Engagement of DDPs by existing FVCIs: Existing FVCIs must engage a DDP for due diligence regarding their registration by March 31, 2025. Failure to do so will result in restrictions on further investments and require liquidation of listed securities by March 31, 2026, and other investments by March 31, 2027.
(b) Compliance with eligibility criteria: The DDP engaged by the FVCI must complete registration due diligence and assess eligibility compliance within 6 months of engagement.
(c) Transfer of Existing FVCI data to DDP: Upon engagement by an FVCI, the DDP may seek transfer of registration related information of the FVCI from SEBI.
(d) Registration Number: The DDP shall grant the certificate of registration, bearing registration number generated by SEBI.
(e) KYC Process: FVCIs must submit KYC documents to intermediaries, who will upload the Form and supporting documents to the KYC Registration Agencies (KRA) portal for access by other intermediaries. In addition to the KYC process, intermediaries may require further documentation for enhanced due diligence based on their internal policies.
Click Here To Read The Full Circular
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