Sebi says KYC according to category of foreign investors

Sebi said foreign investors investing under the PIS route will now be classified as category I, II and III investors
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First Published: Thu, Sep 12 2013. 03 22 PM IST
The KYC format put out with the Sebi release revealed that the registration procedure will be the simplest for category I investors. Photo: Abhijit Bhatlekar/Mint
The KYC format put out with the Sebi release revealed that the registration procedure will be the simplest for category I investors. Photo: Abhijit Bhatlekar/Mint
Updated: Fri, Sep 13 2013. 12 57 AM IST
New Delhi: The Securities and Exchange board of India (Sebi) on Thursday classified foreign investors coming to India through the newly introduced portfolio investment scheme (PIS) route into three categories, while issuing know-your-client or KYC norms for such investors.
In a bid to attract foreign inflows, the capital markets regulator in June had rationalized foreign investment routes, simplified their registration and investment procedures while bringing all categories of foreign investors under a single channel called PIS. Foreign direct investment (FDI) was kept as a separate category.
Sebi said foreign investors investing under the PIS route will now be classified as category I, II and III investors.
The KYC procedures will vary according to the category. Overseas government-related bodies such as foreign central banks, sovereign wealth funds, international or multilateral agencies will be classified under category I. Category II will include regulated broad-based funds such as mutual funds, investment trusts, insurance and reinsurance firms, banks, asset management companies, investment advisors, university funds, pension funds and so on. Endowments, charitable trusts, foundations, corporate bodies, individuals, family offices and all other types of foreign investors who are not in the first and the second category will be classified under category III, said Sebi.
The KYC format put out with the Sebi release revealed that the registration procedure will be the simplest for category I investors.
According to the new rules, all foreign institutional investors, sub-accounts and qualified foreign investors fall under a single set of rules framed for PIS. The KYC norms will be applicable for both the new and existing clients, said Sebi.
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First Published: Thu, Sep 12 2013. 03 22 PM IST
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