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Here are HR Khan Committee recommendations on FPI KYC norms

The HR Khan Committee has submitted an interim report to Securities and Exchange Board of India (Sebi) on know your client (KYC) requirements for the foreign portfolio investors (FPIs).

The HR Khan Committee has submitted an interim report to Securities and Exchange Board of India (Sebi) on know your client (KYC) requirements for the foreign portfolio investors (FPIs).
Sebi said the committee suggested that NRIs, overseas citizens of India and resident Indians should be allowed to hold non-controlling stakes in FPIs and no restriction should be imposed on them to manage non-investing FPIs or Sebi-registered offshore funds.
Some of its key recommendations are as under:
  • NRIs will be allowed to invest as FPIs if the single holding is under 25% and group holding under 50% in a fund, according to the panel.
  • The committee also suggested that erstwhile PIOs should not be subjected to any restrictions.
  • The committee also recommended allowing clubbing of investment limits for well-regulated and publicly held FPIs having common control.
  • It also favoured doing away with additional KYC documentation requirement for beneficial owners in case of government-related FPIs.