DECODING THE DNA OF FOREIGN INVESTMENT: SEBI’S QUEST FOR TRUE BENEFICIARIES

DECODING THE DNA OF FOREIGN INVESTMENT: SEBI’S QUEST FOR TRUE BENEFICIARIES

DECODING THE DNA OF FOREIGN INVESTMENT: SEBI’S QUEST FOR TRUE BENEFICIARIES

AUTHORS – MR. SOYANSU SHREYAN DASH & MR. SACHIN K S, STUDENTS AT SCHOOL OF LAW, CHRIST UNIVERSITY IN BANGALORE

BEST CITATION – MR. SOYANSU SHREYAN DASH & MR. SACHIN K S, DECODING THE DNA OF FOREIGN INVESTMENT: SEBI’S QUEST FOR TRUE BENEFICIARIES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (2) OF 2024, PG. 559-562, APIS – 3920 – 0001 & ISSN – 2583-2344.

Introduction

The Foreign Portfolio Investor (FPI) regime in India is a crucial gateway for international capital entering the country’s securities markets. Governed by stringent regulations, these guidelines are designed to attract foreign investments while maintaining market integrity. Central to this framework are the rigorous Know Your Customer (KYC) protocols required for FPI registration, emphasizing the identification and verification of Beneficial Owners (BOs) as mandated by Rule 9 of the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 (PMLR)[1]. This process is essential to India’s robust Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) systems, ensuring the integrity of its financial markets.

[1] SEBI’s recent FPI BO and SMO requirements,ICI, https://www.ici.org/system/files/2023-08/23-cl-joint-letter-sebi-re-fpi-bo-smo-rqmnt.pdf (last visited on 16th June,2024)

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