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ARTICLE · 01 OCTOBER 2018

SEBI declares NRIs & OCIs eligible for FPIs, prescribes additional KYC norms

Post consideration of the interim report submitted by the HR Khan working group, SEBI has recently released two circulars for FPIs – one dealing with eligibility criteria ...

IndiaGovernment, Public Sector
  • Post consideration of the interim report submitted by the HR Khan working group, SEBI has recently released two circulars for FPIs - one dealing with eligibility criteria for new and existing FPIs that have NRI participation and the other dealing with KYC norms for all FPIs.
  • The Eligibility Circular delinks PMLA Rules from eligibility and prescribes rules for NRI / OCI / RI participation in and management and control of FPIs. Provides welcome clarity on grey areas raised by a previous circular issued in April.
  • The KYC Circular prescribes PMLA Rules and additional SEBI stipulations to identify beneficial owners of FPIs. The additional SEBI rules have the potential to create confusion.

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