Resident Indian fund managers can now be part of FPIs: Sebi

MUMBAI: The Securities and Exchange Board of India (Sebi) on Tuesday approved an amendment to its FPI regulations that will allow resident Indian fund managers to be constituents of foreign portfolio investors (FPIs).

Such FPIs shall be investment funds approved by the Central Board of Direct Taxes under Section 9A of the Income-Tax (IT) Act, 1961, read with the IT Rules, 1962, Sebi said in a statement after its board meeting earlier in the day.

“These amendments shall bring the SEBI (FPI) Regulations, 2019 in line with the recent amendments in Section 9A of the IT Act, thereby facilitating Indian fund managers in managing investment funds incorporated outside India,” Sebi said.

In another mover, the market regulator said its board has approved a proposal to reduce the minimum subscription amount and trading lots for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs).

Under the new amendment, the minimum subscription amount for a REIT or InvIT will be Rs. 10,000-15,000 and the trading lot will be one unit. Earlier, the minimum subscription amount for InvIT was at Rs 1 lakh and for REITs at Rs 50,000.

The regulator has also introduced a minimum holding requirement for unlisted InvITs. Now, unlisted InvITs must have a minimum of five unitholders besides the sponsor and hold at least 25 per cent of the total unit capital.