Extending partial reliefs to Foreign Portfolio Investors (FPI) enforcement requirements, Sebi allowed scanned documents in jurisdictions that are still locked to prevent the spread of coronavirus to be renewed for the investors.
Such relaxations would however not extend to organizations in jurisdictions where lockdown has already been withdrawn, the SEBI said in a circular.
Sebi offered relaxation earlier in March until June 30 and continued until August 31.
Following the relaxation announced in March, participants and custodians are obliged, on scan in the signed version of the documents (instead of originals) and copies of the documents which they do not approve and receipt of e-mail identity of their global custodians or current customers, of the submission, of the CYS and other material adjustments, where this information is already given
The documents may be transferred to KRAs (KYC registry agencies) and the papers may be used by other intermediaries.
Because of the current situation induced by the COVID-19 pandemic, it is known that although locking is being lifted in many jurisdictions.
“In light of the representations obtained from different stakeholders, it has been agreed to extend temporary relaxation to bodies from those jurisdictions, until the time of lockout has been withdrawn from those jurisdictions,” said Sebi.
If the original is not made, the copies should be duly certified by the agencies approved to certify the documents.
To ensure the initial or approved records, the regulator demanded depositary participants and custodians within 30 days of the deadline. Intermediaries should exercise reasonable due care during the processing of those documents based on scanned copies, including the criteria for the regulatory and risk-based approach to Anti-Money Laundering (AML) standards.
Excessively signed application form, including KYC information and supporting documentation and fees, is provided by the applicant for FPI according to the Sebi Guidelines. Furthermore, the originals for authentication should accompany copies of all documentation provided by the applicant.
If appropriate registration documents or KYC are not obtained by the time limit, the regulator claimed that the accounts of such FPIs will be blocked for any new acquisition.
Besides, should documents still not be issued, depository participants and custodians shall submit those cases to Sebi for effective action within three months of the deadline.
