Market regulator Securities and Exchange Board of India (SEBI) has extended relaxation in processing of documents pertaining to FPIs [Foreign Portfolio Investors] till 31 August 2020 due to COVID-19 outbreak, it said in a circular. “In view of the prevailing situation due to COVID-19 pandemic and representations received from various stakeholders, it has been decided that the temporary relaxations shall be extended to August 31, 2020,” the circular said.
It had earlier given this relaxation on 30 March 2020. The temporary relaxations was given to FPIs till 30 June 2020. “All other terms and conditions specified in the aforesaid circular dated March 30, 2020 shall remain unchanged,” the circular further said.
In terms of Operational guidelines for Foreign Portfolio Investors (FPIs) and Designated Depository Participants (DDPs) issued under Securities and Exchange Board of India (FPI) Regulations, 2019, FPI applicant are required to submit duly signed application form (including KYC details) and supporting documents and applicable fees. Copies of all the KYC documents submitted by the applicant should also be accompanied by originals for verification.
SEBI allowed the following relaxations to the FPIs:
1) DDPs and custodians may consider and process the requests for registration, continuance, KYC and KYC review on the basis of scanned version of signed documents and copies of documents which are not certified, received from e-mail IDs of their Global Custodians/existing clients.
2) E-mail IDs of new clients received from domains which are duly encrypted with Transport –layer security (TLS) or similar encryption or the documents are password protected.
3) These documents may be uploaded on KYC Registration Agencies (KRAs). The other intermediaries may rely on said documents.
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#mute The market regulator then directed the intermediaries to undertake necessary due diligence including that required for regulatory and risk based approach towards compliance with AML requirements while processing these documents based on scan copy