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SEBI eases KYC rules for foreign investors

SEBI said foreign investors investing under the portfolio investment scheme route will now be classified as category I, II and III investors

January 01, 1970 5:30 IST | India Infoline News Service
The Securities and Exchange Board of India (SEBI) has classified foreign investors coming to India through the newly introduced portfolio investment scheme (PIS) route into three categories, while issuing know-your-client (KYC) norms for such investors.

SEBI said foreign investors investing under the PIS route will now be classified as category I, II and III investors.

The KYC procedures will vary according to the category, SEBI said in a notification on Thursday.

Overseas government-related bodies such as foreign central banks, sovereign wealth funds, international or multilateral agencies will be classified under category I.

Category II will include regulated broad-based funds such as mutual funds, investment trusts, insurance and reinsurance firms, banks, asset management companies, investment advisors, university funds, pension funds and so on.
Endowments, charitable trusts, foundations, corporate bodies, individuals, family offices and all other types of foreign investors who are not in the first and the second category will be classified under category III, SEBI said.

The KYC format put out with the SEBI release revealed that the registration procedure will be the simplest for category I investors.

According to the new rules, all foreign institutional investors, sub-accounts and qualified foreign investors fall under a single set of rules framed for PIS. The KYC norms will be applicable for both the new and existing clients, SEBI further said.

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