MANU/SPRL/0036/2018

Ministry : Securities and Exchange Board of India

Department/Board : SEBI

Press Release No. : 36/2018

Date : 21.08.2018

Notification/ Circulars Referred : Circular No. CIR/IMD/FPIC/CIR/P/2018/64 dated April 10, 2018 MANU/SFII/0002/2018

Citing Reference:
Circular No. CIR/IMD/FPIC/CIR/P/2018/64 dated April 10, 2018 MANU/SFII/0002/2018  Referred

Know Your Client (KYC) Requirements for Foreign Portfolio Investors (FPIs)

SEBI had issued circular No. CIR/IMD/FPIC/CIR/P/2018/64 dated April 10, 2018 in order to strengthen know your client (KYC) framework for foreign portfolio investors (FPIs) in accordance with Prevention of Money-laundering (Maintenance of Records) Rules, 2005 (PMLA Rules). Accordingly, existing FPIs were provided a time frame of six months from the date of circular to comply with the requirements stipulated therein.

SEBI has received representations from some market participants in relation to the circular, inter-alia, seeking review and additional time for complying with the said circular.

In this regard, stakeholders may note that there is already a working group under the Chairmanship of Shri H.R. Khan, Deputy Governor (Retired), Reserve Bank of India with the following terms of reference:-

1. To advise SEBI on redrafting the FPI Regulations for simplification.

2. To advise SEBI on incorporating the provisions contained in the circulars, FAQs and Operational Guidelines issued by SEBI concerning FPIs, in the regulations itself, to the extent possible.

3. To advise on any other issue relevant to Foreign Portfolio Investors.

The working group was constituted by SEBI on March 26, 2018.

This working group will now also look into the various issues raised in the representations in relation to the circular dated April 10, 2018. Further appropriate view in the matter would be taken after receiving the recommendations of the working group. In the meanwhile, it has been decided ........