had earlier allowed custodians to furnish scanned documents instead of originals for FPI registrations, owing to the outbreak. The relaxation was initially till June 30 and later extended to August 31.
Most custodians in Mumbai are also adopting the policy of work-from-home, hampering their ability to access the required documents.
According to the March circular, custodians were allowed to process requests for registration, continuance, KYC review, and other material change on the basis of scanned version of signed documents (instead of originals) as well as copies of documents that were either not certified or received from email IDs of their global custodians’ existing clients.
All originals and certified documents were required to be submitted within a month of expiry of the relaxed deadline, failing which accounts of FPIs could be blocked for fresh purchase. The pandemic has taken a toll on FPI registrations in the June quarter with work-from-home, volatility in stock markets
worldwide, and redemption pressures prompting investors to defer new investment plans.
New monthly registrations had averaged above 100 this year till April, before dropping to 40 in the June quarter.
FPI net equity flows have been resilient, with net inflows of nearly Rs 59,000 crore in August — a record for any calendar month. In the previous two months, FPI inflows stood at Rs 29,000 crore.
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