- Market Regulator SEBI has published revised know-your-client (KYC) norms for foreign portfolio investors (FPI) providing relief to the foreign entities.
- Here are the major points:
- Contributions by NRI/ OCI/ RI including those of NRI/ OCI/ RI controlled Investment Manager should be below 25% from a single NRI/ OCI/ RI and in aggregate should be below 50% to corpus of FPI.
- Periodic KYC review: FPIs shall be subject to KYC review as and when there is any change in material information / disclosure. The KYC review (including change in BOs / their holdings) should be done based on risk categorization of FPIs. In case of Category III and Category II FPIs from high risk jurisdictions KYC review should be done on yearly basis.
Points to remember:
- allowed inverstemnt from a single NRI?
- periodicity of KYC review for Category II and III?- 1 year
- Full form of OCI, RI, BO?-Overseas Citizens of India, Resident Indians, Beneficial Owners