NOTICE
September
19, 2013
Trading members are hereby informed that the Exchange has received a Circular from SEBI vide Ref. No. CIR/MIRSD/ 07 /2013, September 12, 2013 regarding Know Your Client Requirements for Eligible Foreign Investors. The contents of the said circular are reproduced hereunder for information and necessary action of trading members.
.
Quote : -
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
Encl:
1) Annexure A -
Category of eligible foreign investors investing under PIS route
2) Annexure B –
Clarifications
Unquote:
Trading Members are requested to take note of the aforesaid SEBI circular and ensure compliance. This Circular, Annexure-A & Annexure-B mentioned therein are available on SEBI website at www.sebi.gov.in.
General
Manager