Giving relief to foreign portfolio investors (FPIs), SEBI on Tuesday extended the deadline by two months till December for providing a list of beneficial owners (BO), and assured them that issues raised will be looked into by an expert panel.

SEBI said a working group headed by HR Khan, former deputy governor of the Reserve Bank of India, will now look into the various issues raised by FPIs. Also, SEBI said that appropriate view in the matter will be taken after receiving the recommendations of the working group.

The regulator, in April, had asked Category II and III FPIs to provide a list of their BOs in a prescribed format within six months. The SEBI move to seek details of BOs, the ultimate beneficiaries who may control the fund, had worried FPIs.

In April, SEBI had also asked FPIs to disclose the name and address of the beneficial owner; whether they are acting alone or together through one or more natural persons as a group, tax residency jurisdiction, BO group’s percentage shareholding capital or profit ownership in the FPI.

Revamping measure

In a major revamp, SEBI in 2014 had released norms that had clubbed different categories of foreign investors into a new class called FPIs.

Under the regime, FPIs have been divided into three categories as per their risk profile and the KYC (know your client) requirements, while other registration procedures have been made simpler for them.

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