Securities And Exchange Board Of India - Subsection
Section 32(2) in Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014
(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 prescribed 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 and obtain appropriate declarations and undertakings from applicant to ensure that no other depository account is held by any of the concerned applicant as a foreign portfolio investor or as a non resident Indian, before opening a depository account;(d)ensure that [the securities] [Substituted 'equity shares' by Notification No. SEBI/LAD-NRO/GN/2018/08, dated 27.4.2018 (w.e.f. 7.1.2014).] held by foreign portfolio investors are free from all encumbrances;[Explanation. - An encumbrance created to meet any statutory and regulatory requirements shall not be considered under this clause.] [Inserted by Notification No.SEBI/LAD-NRO/GN/2018/05, dated 5.4.2018 (w.e.f. 7.1.2014).](e)collect and remit fees to the Board, in the manner as specified in Part A of Second Schedule; and(f)in case of change in structure or constitution or direct or indirect change in [common ownership or control] [Substituted 'beneficial ownership' by Notification No. SEBI/LAD-NRO/GN/2018/58, dated 31.12.2018 (w.e.f. 7.1.2014).] reported by the foreign portfolio investor, re-assess the eligibility of such foreign portfolio investor.
