Know Your Client Requirements
Summary
This SEBI circular clarifies operational issues regarding Know Your Client (KYC) norms for foreign investors, including FIIs, Sub Accounts, and QFIs. It mandates that intermediaries strictly follow risk-based due diligence approaches as prescribed in the AML Master Circular. The provisions apply to both new and existing clients and are issued under Section 11(1) of the SEBI Act, 1992.
Text
intermediaries shall strictly follow the risk based due diligence approach as prescribed by SEBI Master Circular on AML... conduct ongoing client due diligence based on the risk profile and financial position of the clients
The provisions of this circular are applicable for both new and existing clients.
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.
If the client has authorized the Global Custodian... or Local Custodian... to sign on its behalf, such PoA may be accepted.
The Global Custodian or the Local Custodian may fill the KYC form, if authorized through the PoA.
Not applicable.
Proof of Identity document duly attested by the entities authorized for the same... or authorised signatories... may be adequate in lieu of the passport copy.
If the foreign entity does not have CIN, the equivalent registration number of the entity may be mentioned. If it does not have any registration number, then SEBI Registration number may be mentioned.
In person verification is not applicable for a non-individual Client. In case of QFI – Individual Client, IPV shall be carried out by SEBI registered intermediary...
In the absence of originals for verification, documents may be attested as per SEBI Circulars... or authorised signatories...
List of beneficial owners with shareholding or beneficial interest in the client equal to or above 25% to be obtained. If Global Custodian /Local Custodian provides an undertaking... intermediary may take such undertaking only.
Not required if Global Custodian /Local Custodian gives an undertaking to provide the following documents as and when requested... resolution from the Board... and An officially valid document...
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Source: SecMarx — Know Your Client Requirements. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.