Temporary relaxation in processing of documents pertaining to FPIs due to COVID-19
Summary
This circular grants temporary relaxations for FPI document processing due to COVID-19, allowing scanned copies instead of originals. DDPs and Custodians must obtain original or certified documents within 30 days after the deadline of June 30, 2020. Failure to submit required documents results in account blocking for fresh purchases and potential reporting to SEBI.
Text
DDPs & Custodians may consider and process the request(s) for registration/ continuance/ KYC / KYC review & any other material change on the basis of scanned version of signed documents (instead of originals) and copies of documents which are not certified
These documents may be uploaded on KRAs. The other intermediaries may rely on said documents.
The above temporary relaxations shall be applicable till June 30, 2020. DDPs & Custodians shall ensure to obtain the original and/or certified documents (as applicable normally) within 30 days from the aforesaid deadline. In case required documents for registration/ KYC are not received by said deadline, the accounts of such FPIs shall be blocked for any fresh purchase.
In case documents are still not received within 3 months of said deadline, DDPs & Custodians shall report these cases to SEBI for appropriate action.
Intermediaries should undertake necessary due diligence including that required for regulatory and risk based approach towards compliance with AML requirements while processing these documents based on scan copy.
Source: SecMarx — Temporary relaxation in processing of documents pertaining to FPIs due to COVID-19. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.