Sebi permits AMCs to provide advisory services to all FPIs at IFSC

Markets regulator Sebi on Friday permitted asset management companies (AMCs) to provide management and advisory services to all FPIs operating from International Financial Services Centres (IFSCs). This is subject to certain conditions, including that such Foreign Portfolio Investors (FPI) will be allowed to invest in mutual fund schemes other than the schemes in the category of “thematic“, the Securities and Exchange Board of India (Sebi) said in a circular.

For investment in equity and equity derivative securities listed on recognised stock exchanges in India, the FPIs will not be allowed to take contra-position for six months from the date of purchase or sale of such securities, it said.

It has been decided that AMCs may also provide management and advisory services to FPIs operating from IFSC and regulated by International Financial Services Centres Authority (IFSCA) not falling under the categories of FPIs specified by Sebi in its circular issued in December 2019, Sebi said.

The decision has been taken in consultation with IFSCA and based on the requests received from AMCs.

Earlier in December 2019, Sebi had allowed AMCs to provide management and advisory services to appropriately regulated FPIs that include pension funds, insurance companies and banks.

Further, AMCs were allowed to provide such services to government and government-related investors such as central banks, sovereign wealth funds, international or multilateral organisations or agencies, including entities, controlled or at least 75 per cent directly or indirectly owned by the such government and government-related investors.