The Securities and Exchange Board of India (Sebi) on Saturday began the process of consultation for finalising the new Know-Your-Client (KYC) guidelines and beneficiary ownership norms for Foreign Portfolio Investors (FPIs). The regulator released the interim report of the high-powered panel headed by former Reserve Bank of India (RBI) Deputy Governor, H R Khan, that has suggested several changes in the rules and extended time for compliance of the norms by FPIs.<\/p>\n
The committee has proposed that non-resident Indians (NRIs), Overseas Citizens of India and resident Indians should be allowed to hold non-controlling stake in FPIs and no restriction should be imposed on them to manage non-investing FPIs or Sebi-registered offshore funds.<\/p>\n
The panel has also suggested that erstwhile PIOs (Persons of Indian Origin) should not be subjected to any restrictions, while it has recommended allowing clubbing of investment limits for well-regulated and publicly held FPIs (foreign portfolio investors) having common control. According to Sebi, the changes in the existing norms have been suggested by the committee on the basis of the inputs from the finance ministry and stakeholders. Sebi has invited public comments on the interim report till September 17.<\/p>\n
The panel has suggested that the time for compliance with the new norms should be extended by six months, after they are finalised, while the non-compliant investors should be given further 180 days to wind down their existing positions. The Khan committee has said that Sebi should do away with additional KYC requirements for beneficial owners in case of government-related FPIs.<\/p>\n
The committee has also suggested changes in the norms pertaining to identification of senior managing official of FPIs and for beneficial owners of listed entities. It has suggested changes in disclosure of personal information of beneficial owners of FPIs. The panel, however, said that all new rules will apply equally to those investors using the P-Notes.<\/p>\n
The regulator said that the committee is also Sebi said separately considering if it should recommend merger of the FPI, NRI\/OCI route of investment to the government and the RBI. The committee also wants Sebi to consult with the RBI and suggest suitable actions that FPIs need to take for divestment or re-classification of holdings as per the FDI limits. Sebi, according to the panel should consult the government to evolve a more objective criteria for defining high-risk jurisdictions. The interim report of the Khan committee assumes significance as laast month, Sebi had given FPIs till December 31 extended the deadline to provide a list of beneficial owners.<\/p>\n
In April, Sebi had come out with a circular asking FPIs to disclose name and address of the beneficial owner; whether they are acting alone or together through one or more natural persons as a group, tax residency jurisdiction, beneficial owner group\u2019s percentage shareholding capital or profit ownership in the FPI.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Securities and Exchange Board of India (Sebi) on Saturday began the process of consultation for finalising the new Know-Your-Client (KYC) guidelines and beneficiary ownership norms for Foreign Portfolio Investors (FPIs). The regulator released the interim report of the high-powered panel headed by former Reserve Bank of India (RBI) Deputy Governor, H R Khan, that […]<\/p>\n","protected":false},"author":1,"featured_media":41625,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[410],"tags":[],"class_list":["post-41624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/41624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/comments?post=41624"}],"version-history":[{"count":1,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/41624\/revisions"}],"predecessor-version":[{"id":41626,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/posts\/41624\/revisions\/41626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media\/41625"}],"wp:attachment":[{"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/media?parent=41624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/categories?post=41624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blastingskyhawk.com\/english\/wp-json\/wp\/v2\/tags?post=41624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}