CIRCULAR

CIR/MIRSD/ 07 /2013                                                      September 12, 2013

1.    All Recognized Stock Exchanges
2.    Stock Brokers through Recognized Stock Exchanges
3.    Depository Participants through Depositories
4.    Mutual funds
5.    Association of Mutual Funds in India
6.    Portfolio Managers
7.    KYC Registration Agencies (KRAs)
8.    Alternative Investment Funds (AIFs)
9.    Collective Investment Schemes (CIS)10. Custodians

Dear Sir/Madam,

Sub: Know Your Client Requirements for Eligible Foreign Investors

1. This has reference to SEBI circular No CIR/MIRSD/ 11 /2012 dated September 5, 2012 whereby certain clarifications were issued on ‘Know Your Client’ requirements in case of foreign investors viz. Foreign Institutional Investors, Sub Accounts and Qualified Foreign Investors. This circular is issued in partial modification to the provisions of circular dated September 5, 2012.

2. Eligible foreign investors investing under Portfolio Investment Scheme (‘PIS’) route shall be classified as Category I, II and III as provided in Annexure A. The intermediary shall follow risk based Know Your Client norms. Accordingly, certain clarifications are hereby issued, as given in Annexure B, based on the category of these investors.
3. Eligible foreign investors investing under PIS route shall be subject to KYC review as and when there is any change in material information / disclosure.
4. The provisions of this circular are applicable for both the new and existing clients.

5. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Sub Rule 14(i) of Rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Yours faithfully,

A.S.Mithwani
Deputy General Manager
022-26449613
aliasgarm@sebi.gov.in

Encl:

1)    Annexure A – Category of eligible foreign investors investing under PIS route

2)    Annexure B – Clarifications

Annexure A

Category Eligible Foreign Investors
I Government and Government related foreign investors such as Foreign Central Banks, Governmental Agencies, Sovereign            Wealth Funds, International/   Multilateral

Organizations/ Agencies

II a) Appropriately regulated broad based funds such as

Mutual Funds, Investment Trusts, Insurance Reinsurance Companies, Other Broad Based Funds

etc.

b) Appropriately regulated entities such as Banks, Asset

Management Companies, Investment Managers/

Advisors, Portfolio Managers etc.

c) Broad based funds whose investment manager appropriately regulated

d) University Funds and Pension Funds

e) University related Endowments already registered

with SEBI as FII/Sub Account

III. All other eligible foreign investors investing in India under

PIS route not eligible under Category I and II such as

Endowments,  Charitable        Societies/Trust,Foundations,
Corporate Bodies, Trusts, Individuals, Family Offices, etc.

 Annexure B

Document Type Category – I Category – II Category – III
Entity Level Constitutive Docs Required Required Required
Proof of Address Required

Power of Attorney, mentioning the address, is acceptable as

address proof

Required

Power of Attorney, mentioning the address, is acceptable as address proof

Required

– Address proof other than Power of Attorney should be submitted.

PAN Card Required Required Required
Financials Exempt Exempt Risk based

– Financial data sufficient.

SEBI Registration Certificate Required Required Required
Board Resolution Exempt Required Required
KYC Form Required Required Required
Senior Management (Whole Time Directors! Partners! Trustees! etc.) List Required Required Required
Proof Of Identity Exempt Exempt Entity        declares       on

letterhead   –   full   name,

nationality and  DoB  OR
Photo-identity proof’

Proof of Address Exempt Exempt Declaration on letter head
Photographs Exempt Exempt Exempt
Authorized Signatories List & Signatures Required

–       List     of      Global

Custodian            (‘GC’)

signatories can be given in case of POA to GC

Required

– List of GC signatories can be given in case of POA to GC

Required
Proof Of Identity Not required Not required Required
Proof of Address Not required Not required Not required
Photographs Not required Not required Required
Ultimate Beneficial Owner (‘UBO’) List Exempt Required

– Can declare “no UBO over 25%”

Required
Proof Of Identity Exempt Exempt Required
Proof of Address Exempt Exempt Exempt
Photographs Exempt Exempt Exempt

# Note: Copies of all the documents, wherever applicable, to be submitted by the applicant should be self attested and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents, as per the SEBI circular no. MIRSD/SE/Cir-21/201 1 dated October 5, 2011.

More Under SEBI

Posted Under

Category : SEBI (2985)
Type : Circulars (7881) Notifications/Circulars (32598)
Tags : SEBI notifications (2294)

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured Posts