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COVID-19: SEBI Temporarily eases the processing of Documents for FPIs till June 30, 2020

regulatory requirements - SEBI - compliance - Taxscan

In the wake of Coronavirus (COVID-19), the Security and Exchange Board of India (SEBI) temporarily eases the processing of documents for Foreign Portfolio Investors (FPIs) till June 30, 2020.

The Security and Exchange Board of India (SEBI) issued a circular on March 30, 2020, in the name of General Manager, Achal Singh while addressing all the Foreign Portfolio Investors (FPIs) through their Designated Depository Participants (DDPs) or Custodian of Securities; Recognized Stock Exchanges or Clearing Corporations; recognised Stock Exchanges and Clearing Corporations in International Financial Services Centres; the Depositories (NSDL and CDSL); Stock Brokers; Depository Participants; and KYC Registrations Agencies (KRAs).

In the light of the present situation of the outbreak of COVID-19, the regulator has decided to grant the relaxations because the Foreign Portfolio Investors (FPIs) are not in a position to send original or certified documents.

The Security and Exchange Board of India (SEBI) has asked depository participants and custodians to process the request for registration, continuance, KYC 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, received from e-mail IDs of their global custodians or existing clients where these details are already captured in records or e-mail IDs of new clients received from domains which are duly encrypted. These documents can be uploaded on  KYC Registration Agencies (KRAs) and other intermediaries may rely on the papers.

The Security and Exchange Board of India (SEBI) seeks to relax the processing of documents for Foreign Portfolio Investors (FPIs) till June 30, 2020. The regulator has asked depository participants and custodians to ensure to obtain the original and certified documents within 30 days from the deadline.

The Security and Exchange Board of India (SEBI) said that in case required documents for registration or KYC are not received by the deadline, the accounts of such FPIs will be blocked for any fresh purchase.

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