Relaxation in compliance with the KYC Circular
This is with reference to our newsflash titled “NRIs: Not Really for Indians? SEBI tightens FPI Norms” dated 17 April 2018 (Newsflash). The Newsflash analysed the Securities and Exchange Board of India (SEBI) circular dated 10 April 2018 (SEBI Circular), which disallowed Indian / Non-resident Indians from being beneficial owners of a Foreign Portfolio Investor (FPI) and clarified the position on clubbing of investments limits. The SEBI Circular provided a period of 6 months to registered FPIs from the date of the SEBI Circular, ie, until 10 October 2018, to take corrective measures to ensure compliance with the beneficial ownership requirement as well as to meet the 10% investment limit under Regulation 21 (7) of the SEBI (Foreign Portfolio Investors) Regulations, 2014 (FPI Regulations). Now, vide circular no IMD/FPIC/CIR/2018/124 titled ”Amendment to the SEBI Circular No. CIR/IMD/FPIC/CIR/P/2018/64 dated 10 April 2018 on Know Your Client Requirements for Foreign Portfolio Investors”, dated 21 August 2018 (Extension Circular), SEBI has granted an extension of more than two and half months, ie, till 31 December 2018, to FPIs to manage their holdings and investments in a manner to be in compliance with the SEBI Circular. Therefore, FPIs now have time till the end of 2018 to modify its beneficial ownership and/or investments to be in-sync with the SEBI rules and regulations. At this stage, the Extension Circular makes no other change to the SEBI Circular other than the grant of the extension.
- Siddharth Shah (Partner), Divaspati Singh (Associate Partner) and Khusboo Agarwal (Associate)
For any queries please contact: editors@khaitanco.com
We have updated our Privacy Policy, which provides details of how we process your personal data and apply security measures. We will continue to communicate with you based on the information available with us. You may choose to unsubscribe from our communications at any time by clicking here.
For private circulation only
The contents of this email are for informational purposes only and for the reader’s personal non-commercial use. The views expressed are not the professional views of Khaitan & Co and do not constitute legal advice. The contents are intended, but not guaranteed, to be correct, complete, or up to date. Khaitan & Co disclaims all liability to any person for any loss or damage caused by errors or omissions, whether arising from negligence, accident or any other cause.
© 2021 Khaitan & Co. All rights reserved.
Mumbai
One Forbes
3rd & 4th Floors, No. 1
Dr. V. B. Gandhi Marg
Fort, Mumbai 400 001
Chennai
119/65, First Floor
Dr Radhakrishnan Salai
Mylapore
Chennai 600 004,
India
Noida
Max Towers
7th & 8th Floors
Sector 16B, Noida
Gautam Buddh Nagar
201 301 India
Singapore
Ocean Financial Centre
#37-02 10 Collyer
37th Floor Quay
Raffles Place 049315,
Singapore