Foreign portfolio investors cry foul over Sebi's April 10 circular on KYC norms
Updated : September 04, 2018 12:03 PM IST
The Securities and Exchange Board of India (Sebi), in its April 10 circular, clarified the 'Know Your Client’ (KYC) norms but skipped government's stated purpose is to mobilise global capital for investment into India.
Under the Sebi (Foreign Portfolio Investors) Regulations, 2014 (FPI Regulations), NRIs are not eligible to obtain registration as FPIs.
Even though the intentions are of curbing money laundering, the circular will have its implications as the entire group of the Indian-origin fund managers cannot be seen as a conduit for money laundering.