Disruptive norms

Sebi should reconsider new KYC rules for FPIs

The Securities and Exchange Board of India’s (Sebi’s) revised know-your-customer norms for foreign portfolio investors (FPIs) could trigger a wave of selling in mid-October, when the changes come into effect. At the heart of the circular is the mandate that non-resident Indians, overseas citizen of India and persons of Indian origin cannot be beneficial owners (BOs) of FPIs. The threshold for identifying beneficial owners of FPIs on controlling ownership interest is 25 per cent in case of companies and 15 per cent for partnership firms. The threshold has been set lower, at 10 per cent, for "high-risk" nations with a