10 Jan SEBI to Issue New Privacy Rules for FPI’s
The Securities and Exchange Board of India is reportedly in the process of crafting new data privacy rules governing foreign portfolio investors. The move is said to be prompted by the conflict in regulations with several countries, particularly Canada and the EU, which account for around 40 percent of FPI flows into India.
It is said that FPI concerns relate mostly to compatibility of SEBI’s new KYC requirements with data localization norms applicable in their home countries. The Indian regulator is also considering exemptions for publicly pooled funds, along with the creation of a high-end encrypted platform for data exchange and storage.
The exempted funds will also have to collect all the required data and store it in their systems, as well as provide an undertaking that they have collected all the required KYC data and will share it with Sebi if needed.
Source: Economic Times India