MANU/SIPM/0005/2018

Ministry : Securities and Exchange Board of India

Department/Board : Investment Management Department

Circular No. : CIR/IMD/FPIC/47/2018

Date : 13.03.2018

Notification/ Circulars Referred : Circular No. CIR/IMD/FPIC/ 26 /2018 dated February 15, 2018 MANU/SIPM/0003/2018

Citing Reference:
Circular No. CIR/IMD/FPIC/ 26 /2018 dated February 15, 2018 MANU/SIPM/0003/2018  Referred

To,

1. All Foreign Portfolio Investors ("FPIs") through their Designated
Depository Participants ("DDPs")/ Custodian of Securities.
2. All Recognized Stock Exchanges
3. The Depositories (NSDL and CDSL)

Sir/ Madam,

Clarifications in respect of investment by certain Category II FPIs

I. This is in reference to SEBI circular No. CIR/IMD/FPIC/ 26 /2018 dated February 15, 2018 regarding "Easing of access norms for investment by FPIs".

II. In view of queries from stakeholders, the following clarifications are made in respect of investment by certain category II FPIs:-

(1) The collective investment vehicle of private banks/ merchant banks investing on behalf of clients need to ensure the following:-

a) The client/ investor should have fulfilled know your client norms. The beneficial owners (BO) of client/ investor of bank should be identified in accordance with Rule 9 of Prevention of Money Laundering (Maintenance of Records) Rules, 2005.

b) The client/ investor or their BO should not be Resident Indian/ NRI/ Overseas Citizen of India.

c) The client/ investor is not resident in a country identified in the public statement of Financial Action Task Force as:-