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Investors converting to FPI need to update KYC details by Dec: SEBI

FPIs would encompass all FIIs, their sub-accounts and qualified foreign investors under a new regime that comes into force on June 1

May 26, 2014 8:48 IST | India Infoline News Service
SEBI (Securities and Exchange Board of India) has said existing foreign investors applying for conversion to new class of investor category, FPIs (foreign portfolio investors), will have to update their Know Your Clients (KYC) details by the end of December.
FPIs would encompass all foreign institutional investors (FIIs), their sub-accounts and qualified foreign investors (QFIs) under a new regime that comes into force on June 1.
Intermediaries which on boards New EFI (eligible foreign investors) / FPI, is required to comply with the KYC requirements as prescribed by SEBI and upload the same on the KRA system.
The existing EFIs applying for conversion as FPIs from June 1, 2014 (as provided in the SEBI (Foreign Portfolio Investors) Regulations, 2014) shall also update their KYCs, as required, at the time of submission of documents to the DDPs.
Considering the initial phase of new FPI regime, the existing EFI clients applying for conversion as FPIs between June-December, 2014 shall update their KYCs latest by December 31, 2014. However, from January 1, 2015, all EFIs, coming up for conversion as FPI, must update their KYCs at the time of submission of documents to the DDPs (designated depository participants).
All such updated information in KYCs shall also be uploaded on the KRA system. In the event of non-submission of KYC documents, no further transactions shall be permitted to such clients.
In addition to information provided by the client, the intermediaries can rely on documents available from reliable public sources (for e.g. websites of Regulators, Exchanges, SROs, Registrars) while collecting documents / required for an EFI / FPI. However, it shall be ensured that copies of such documents are sent to the EFI to revert in case of any changes / modifications. Attestation of these documents (by way of mentioning the source
of the document and signature against the same) may be carried out by a duly authorized official of the Intermediary.

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