NEW DELHI: Markets regulator Sebi on Friday extended the deadline for kicking off a new system for depositories to monitor foreign investment limits in listed Indian companies.
While the earlier deadline was May 1, “the new system for monitoring foreign investment limits in listed Indian companies shall be made operational on May 18, 2018,” the Securities and Exchange Board of India (Sebi) circular said.
The regulator has also given more time to companies to provide the necessary data to the depositories. Now, they need to submit the data by May 15 from the earlier deadline of April 30. Under the new system, monitoring the foreign investment limits in listed Indian companies will be implemented and housed at the depositories — NSDL and CDSL.
Companies will now also have to appoint any one depository as their designated depository for the purpose of monitoring the foreign investment limits. Stock exchanges will also have to provide data on paid-up equity capital of the company to its designated depository.According to the new system, this data will also include paid-up equity capital on a fully diluted basis, which is the total number of shares that would be outstanding if all possible sources of conversion are exercised.
Depositories also need to provide an interface where a firm will need to submit information including Company Identification Number (CIN), details of shares held by foreign portfolio investors, non-resident Indians and other foreign investors in demat as well as in physical form. Details of indirect foreign investment held in both demat and physical form will need to be divulged.
The company will be red-flagged if total foreign investment is within 3 per cent or less than 3 per cent of sectoral cap.