had exempted category-I and -II FPIs, known to be low-risk investors, from having to give specified KYC documents. It has now asked these FPIs
to comply with this paperwork if any investigative agency seeks the information.
The market regulator has also reclarified on a PIO owning stake in an FPI. According to the new rules, an Indian here or a non-resident Indian cannot be the beneficial owner of an FPI. But, if an FPI is a non-investing entity, an Indian may continue to remain a BO.
Funds which do not comply with the new norms will not be able to take any new derivative positions after April. Such funds get six months to terminate these positions.