| Notification Detail :
CIRCULAR
CIR/MIRSD/ 11 /2012 September 5, 2012
1.Stock Brokers through Recognized Stock Exchanges
2. Depository Participants through Depositories
3. Mutual funds
4. Association of Mutual Funds in India
5. Portfolio Managers
6. KYC Registration Agencies (KRAs)
7. Alternative Investment Funds (AIFs)
8. Collective Investment Schemes (CIS)
Dear Sir,
Sub: Know Your Client Requirements
1. This has reference to SEBI circulars No CIR/MIRSD/16/2011 dated August 22,
2011 and MIRSD/SE/Cir-21/2011 dated October 5, 2011 on know your client
norms for the securities market.
2. SEBI has received representations regarding operational issues in the
implementation of aforesaid SEBI Circulars in case of foreign investors viz. Foreign
Institutional Investors, Sub Accounts and Qualified Foreign Investors. In
consultation with the Stock Exchanges, Depositories and Intermediaries, certain
clarifications are issued, as given in Annexure A, with respect to these investors.
3. Further, the intermediaries shall strictly follow the risk based due diligence
approach as prescribed by SEBI Master Circular on AML No. CIR/ISD/AML/3/2010
dated December 31, 2010. Also, they shall conduct ongoing client due diligence
based on the risk profile and financial position of the clients as prescribed in the
Circular.
4. The provisions of this circular are applicable for both new and existing clients.
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Securities and Exchange Board of India
Page 2 of 5
5. This circular is issued in exercise of powers conferred under Section 11 (1) of the
Securities and Exchange Board of India Act, 1992 to protect the interests of
investors in securities and to promote the development of, and to regulate the
securities market.
Yours faithfully,
A.S.Mithwani
Deputy General Manager
022-26449613
aliasgarm@sebi.gov.in
Encl:
1) Annexure A: Clarifications
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