Foreign portfolio investors raise red flag on KYC rules over privacy

Currently, FPIs are subject to a KYC review as and when there is any change in material information or disclosure

Custodians of foreign portfolio investors (FPIs) as well as industry lobby groups have written to the Securities and Exchange Board of India (Sebi), raising privacy concerns arising out of the regulator’s April 10 circular mandating disclosure of additional information to identify the beneficial owners (BOs).

As part of Sebi’s know-your-client (KYC) requirement, FPIs have to disclose BOs’ details such as address, date of birth, tax residency number, social security number and passport number, and they have six months to comply with the directive. 

“India’s new KYC norms may clash with global data privacy laws. Investment firms globally, too, are not