Tough KYC norms for NRI investors a classic case of double standards

Fund managers have been asked by India's stock-market regulator to come up with a list of "high-risk" countries

Wealthy Indians living overseas are reliable lenders of last-resort dollars, to be tapped whenever New Delhi loses control of its balance of payments. Except when the same people try to pool equity investments from overseas for their home country; then they’re money launderers.  

That, in a nutshell, is how the Indian authorities view non-resident Indians. And it leaves fund managers in a bind.

Their custodians have been asked by India’s stock-market regulator to come up with a list of “high-risk” countries. Any investing vehicle from those economies with a 10 per cent or greater beneficial owner will have to perform