NOTICE
Dated:
June 25, 2014
Trading
members are hereby informed that the Exchange has received a Circular from SEBI
vide Ref. No. CIR/IMD/FIIC/11/2014, dated June 16, 2014 regarding Know Your Client
(KYC) requirements for Foreign Portfolio Investors (FPIs). The contents of the said Circular
are reproduced hereunder for information of trading members.
CIRCULAR
CIR/IMD/FIIC/11/2014
June 16, 2014
To,
1. All Foreign
Portfolio Investors through their Designated Depository Participants
2. All
Designated Depository Participants (DDPs)
3. All
Recognized Stock Exchanges
4. All
Depositories
5. All Custodians of Securities
Dear Sir/ Madam,
Sub: Know Your Client (KYC) requirements for
Foreign Portfolio Investors (FPIs).
1. Reserve Bank
of India (RBI) has issued circular no. RBI/2013-14/552 DBOD.AML .BC.No.
103/14.01.001/2013-14 dated April 03, 2014 regarding harmonization of KYC norms
for FPIs.
2. In the light of the above
circular, it has been decided as follows:
a. DDPs are
advised to share the relevant KYC documents with the banks concerned based on
written authorization from the FPIs.
b. Accordingly,
a set of hard copies of the relevant KYC documents furnished by the FPIs to
DDPs may be transferred to the concerned bank through their authorised
representative.
c. While
transferring such documents, DDPs shall certify that the documents have been
duly verified with the original or notarised documents have been obtained,
where applicable. In this regard, 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, may be kept.
3. The provisions of this circular
are applicable for both new and existing FPI clients.
4. This
circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market.
5. The circular
is available on SEBI website at www.sebi.gov.in under the categories
"Legal framework" and "information for - FII".
Yours faithfully,
S. Madhusudhanan
Deputy General Manager
+91-22-26449614
Trading
Members are requested to take note of the aforesaid guidelines of SEBI and act
accordingly.
M.A.V. Raju
General
Manager