SEBI grants temporary relaxation in processing of documents pertaining to FPIs

Apr 01, 2020 | by Avantis RegTech Legal Research Team


Secretarial Compliance

The Securities and Exchange Board of India (SEBI) on March 30, 2020, has decided to grant temporary relaxation in processing of documents pertaining to Foreign Portfolio Investors (FPIs) due to COVID-19. SEBI had issued operational guidelines for FPIs and Designated Depository Participants (DDPs) under the SEBI (FPI) Regulations, 2019, where the FPI applicant should submit duly signed application form (including KYC details) and supporting documents accompanied by originals for verification and applicable fees.

But due to the recent situation pursuant to COVID-19 pandemic, SEBI has decided to grant the following relaxations in a situation where FPIs are not in a position to send original and/or certified documents:-

a) DDPs and Custodians may consider and process the request for registration/continuance/KYC/KYC review and any other material change on the basis of scanned version of signed documents (instead of originals) and copies of documents which are not certified.

b) These documents may be uploaded on KRAs. The other intermediaries may rely on said documents.

The above temporary relaxations shall be applicable till June 30, 2020. The DDPs & Custodians shall ensure to obtain the original and/or certified documents within 30 days from the aforesaid deadline. In case the required documents for registration/KYC are not received by said deadline, the accounts of such FPIs shall be blocked for any fresh purchase. In case documents are still not received within 3 months of said deadline, DDPs & Custodians shall report these cases to SEBI for appropriate action.

[SEBI Circular No. SEBI/HO/FPI&C/CIR/P/2020/056]


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