Securities And Exchange Board Of India - Subsection
Section 31(2) in Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019
(2)The designated depository participant engaged by an applicant seeking registration as foreign portfolio investor shall -(a)ascertain at the time of granting registration and whenever applicable, whether the applicant forms part of any investor group;(b)open a dematerialized account for the applicant only after ensuring compliance with all the requirements under Prevention of Money Laundering Act, 2002 and rules and regulations specified thereunder, Financial Action Task Force standards and circulars issued by the Board in this regard, from time to time and shall also ensure that foreign portfolio investors comply with all these requirements on an ongoing basis;(c)carry out necessary due diligence to ensure that no other depository account per depository is held by any of the concerned applicant as a foreign portfolio investor, before opening a depository accountProvided that a foreign portfolio investor can open separate depository accounts for holding securities under the Voluntary Retention Route or any other scheme as specified by the Reserve Bank of India or the Board;(d)collect and remit fees to the Board, in the manner as specified in Part A of Second Schedule; and(e)in case of change in structure or constitution or direct or indirect change in common ownership or control reported by the foreign portfolio investor, re-assess the eligibility of such foreign portfolio investor.
