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SEBI Modifies Operational Guidelines for FPIs, Depository Participants; Slaps Rs 6 lakh fine on Pace Stock Broking in NSE Co-Location Case 

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Sebi tweaks operational guidelines for FPIs, depository participants

On April 29, 2022, the Securities and Exchange Board of India (SEBI) has modified the operational guidelines, issued in November 2019, for Foreign Portfolio Investors (FPIs), Designated Depository Participants (DDPs), and Eligible Foreign Investors pertaining to Certificate of Registration, and Name change w.e.f. May 9, 2022.

  • This modification by SEBI has been done by exercising its powers conferred under Section 11 (1) of the SEBI Act, 1992.
  • These will be applicable from May 9, 2022. 

Key points:

i.With regard to registration certificate for FPIs, the DDPs will grant the certificate of registration, bearing the registration number generated by SEBI.

ii.With regard to name change, DDPs will effect the name change in the certificate of registration if they get the request for name change. They will issue a letter and fresh registration certificate to such applicant acknowledgement from its database including a statement that the name changes has been granted.


This modification follows the SEBI notified rules in January 2022 for generation of FPI registration number by SEBI. Subsequently, the Ministry of Finance in March 2022 amended the Common Application Form (CAF), wherein both the depositories NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Ltd) have been allowed to host the CAF (Common Application Form) for FPI registration.

  • In order to operationalize the same, SEBI decided to modify the operational guidelines.

Click Here for Official Notification

SEBI cancels registration of Alpha Commodity & Slaps Rs 6 lakh fine on Pace Stock Broking in NSE co-location case 

i.SEBI imposed Rs 6 lakh penalty on New Delhi (Delhi)-based Pace Stock Broking Services for malpractices related to National Stock Exchange’s (NSE) co-location facility. The order came after SEBI received multiple complaints against the broker.

  • It should be noted that NSE has given preferential access to the tick-by-tick (TBT) data feed to certain trading members (Pace Stock Broking was on one of it), however, the secondary source for TBT data is to be used in the event of non-availability of the TBT primary source, but Pace Stock Broking continued to log in to the secondary server.

ii.It also cancelled the registration of Alpha Commodity for facilitating its clients to trade in illegal contracts on National Spot Exchange Ltd (NSEL) and failing to fulfil the fit and proper  criteria.

  • Sebi has asked the broker to allow its existing clients to withdraw or transfer their securities or funds held in its custody within 60 days.
  • In case of failure of any clients to withdraw or transfer their securities or funds within this period, the broker will transfer the funds and securities to another broker within 30 days thereon

Other orders by SEBI:

i.Meanwhile, in a separate order, SEBI has barred nine entities from participating in the capital market for 3 months over price manipulation in the securities of Super Sales India Ltd.

ii.In another order, it has levied a fine of Rs 5 lakh on Champa Devi Jalan for indulging in non-genuine trades in illiquid stock options at BSE (Formerly Bombay Stock Exchange).

Recent Related News:

i.On March 9, 2022, SEBI has increased the limit for investment through Unified Payments Interface (UPI) mechanism to Rs 5 lakh from Rs 2 Lakh for the investors applying in public issues of debt securities, which will open on or after May 1, 2022.

ii.SEBI has amended the rules regarding investment aspects of Category III of alternative investment funds (AIFs). The new norms will be called as ‘SEBI’s AIF Regulations, 2022’ w.e.f. March 16, 2022.

About Securities and Exchange Board of India (SEBI):

Chairperson– Madhabi Puri Buch
Headquarters– Mumbai, Maharashtra