As per market norms, any FPI who wants to surrender the certificate of registration may request for the same to the Designated Depository Participants (DDP).
While making an application to Sebi for obtaining the ”no objection certificate” for surrender, the DDP needs to confirm that the accounts held by the applicant in the capacity of FPI have NIL balance and are blocked for further transactions, Sebi said in a circular. It also needs to confirm that the FPI’s CP (Custodial Participant) code is also blocked, no dues or fees is pending towards Sebi and that there are no actions or proceedings pending against the applicant, it added.
In addition, DDP also needs to ensure that all the accounts of the applicant held in the capacity of FPI, including bank account and securities account, are closed and the CP code is deactivated within 10 working days from the date of receipt of NOC (No Objection Certificate) from the regulator.
The ”circular shall come into force with immediate effect,” Sebi said.
In November 2019, Sebi prescribed procedural requirements to be followed by the DDP for processing the surrender requests.
The regulator came out with the additional guidelines ”in order to have a uniform market practice for processing of surrender requests.” PTI SRS RUJ RUJ