Sebi asks depository participants to share KYC details of foreign investors with banks
17 June 2014
The Securities and Exchange Board of India (Sebi) has asked designated depository participants (DDPs) to share the relevant KYC documents relating to foreign portfolio investors (FPIs) with the banks concerned based on written authorisation from the FPIs.
The regulator has directed DDPs to transfer a set of hard copies of the relevant KYC documents furnished by the FPIs to the concerned bank through their authorised representative.
DDPs have been directed to certify that the documents have been duly verified with the original or notarised documents obtained, where applicable.
They have also been asked to keep a proper record of transfer of documents, both at the level of the DDP as well as at the bank, under signatures of the officials of the transferor and transferee entities.
The new guidelines are applicable to both new and existing FPI clients, SEBI said, adding that the new norms are intended to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.