SEBI said qualified depository participants can now hold funds on behalf of qualified foreign investors (QFIs) for five working days before redeployment or repatriation.
This would be irrespective of whether they come through the direct equity or mutual fund route.
Earlier, repatriation in case of non-allotment of mutual units were to be done within three working days, redeployment of proceeds in MF schemes within two working days and remittance of MF dividends (to a designated foreign currency account) credited in the rupee pool account of a qualified DP in two working days.
SEBI also amended the eligibility criteria for registered DPs to become a qualified DP to handle qualified foreign investor business.
A DP which is either a clearing bank or clearing member of any of the clearing corporations with a minimum net worth of Rs 50 crore, having appropriate arrangements for receipt and remittance of money with a designated Authorised Dealer (AD) Category-I bank shall become a qualified DP.
DPs shall also have to demonstrate that they have systems and procedures to comply with the FATF Standards, Prevention of Money Laundering (PML) Act, and extant SEBI circulars. DPs are expected to obtain prior approval from SEBI before commencing the activities relating to opening of accounts of QFI.