BCI rules do not permit advertisement or solicitation by advocates or their firms. This website is for information only. See Disclaimer

𝐒𝐄𝐁𝐈 𝐂𝐢𝐫𝐜𝐮𝐥𝐚𝐫 𝐟𝐨𝐫 𝐂𝐞𝐧𝐭𝐫𝐚𝐥𝐢𝐳𝐢𝐧𝐠 𝐅𝐀𝐓𝐂𝐀 𝐚𝐧𝐝 𝐂𝐑𝐒 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬

Featured in

SEBI has recently issued a circular outlining the procedure and manner for centralizing certifications related to the Foreign Account Tax Compliance Act (“FATCA”) and the Common Reporting Standard (“CRS”) by intermediaries, who are Reporting Financial Institutions (“RFI”) through the KYC Registration Agencies (“KRAs”) platform. This initiative aims for ease of doing business and ensure compliance reporting.

FATCA was enacted by the USA in 2010 to obtain information on accounts held by US taxpayers in other countries. Similarly, CRS is an initiative of G-20 countries and Organisation for Economic Co-operation and Development (“OECD”) and serves a comparable purpose to FATCA.

An RFI, as defined under rule 114F(7) of the Income Tax Rules, 1962, means,— (a) a financial institution (other than a non-reporting financial institution) which is resident in India, but excludes any branch of such institution, that is located outside India; and (b) any branch, of a financial institution (other than a non-reporting financial institution) which is not resident in India, if that branch is located in India.

According to the SEBI circular, RFIs are required to upload FATCA and CRS certifications obtained from clients onto the KRAs system starting from July 01, 2024. Existing certifications acquired before this date must be uploaded by intermediaries onto the KRAs systems within a 90-day period.

The responsibility for acquiring and reporting FATCA and CRS certifications, along with related compliances, rests with the respective intermediaries. Intermediaries are required to validate the reasonableness of such certifications based on information gathered during account opening procedures, including documentation in accordance with the Prevention of Money Laundering (Maintenance of Records) Rules, 2005. They must also promptly update self-certifications in case of any client-reported changes.
KRAs are tasked with developing systems/mechanisms in collaboration with one another and adhering to uniform internal guidelines/standards, as advised by SEBI.

A copy of the Circular is enclosed herewith and also available on the SEBI website.

Readers are welcome to share their views with Regstreet Law Advisors on info@regstreetlaw.com.

Latest RegPost

𝐇𝐲𝐩𝐨𝐭𝐡𝐞𝐭𝐢𝐜𝐚𝐥 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐀𝐝𝐯𝐞𝐫𝐭𝐢𝐬𝐢𝐧𝐠: 𝐒𝐄𝐂’𝐬 𝐂𝐫𝐚𝐜𝐤𝐝𝐨𝐰𝐧 𝐨𝐧 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐬𝐞𝐫𝐬

Read More

Regstreet Law Advisors 𝐰𝐢𝐭𝐡 𝑫𝒆𝒑𝒖𝒕𝒚 𝑪𝒉𝒊𝒆𝒇 𝑴𝒊𝒏𝒊𝒔𝒕𝒆𝒓 𝑫𝒆𝒗𝒆𝒏𝒅𝒓𝒂 𝑭𝒂𝒅𝒏𝒂𝒗𝒊𝒔: 𝐀𝐧 𝐈𝐧𝐬𝐩𝐢𝐫𝐢𝐧𝐠 𝐄𝐧𝐜𝐨𝐮𝐧𝐭𝐞𝐫

Read More

𝐑𝐁𝐈 𝐞𝐚𝐬𝐞𝐬 𝐫𝐮𝐥𝐞𝐬 𝐟𝐨𝐫 𝐫𝐞𝐬𝐢𝐝𝐞𝐧𝐭 𝐞𝐧𝐭𝐢𝐭𝐢𝐞𝐬 𝐭𝐨 𝐡𝐞𝐝𝐠𝐞 𝐭𝐡𝐞𝐢𝐫 𝐠𝐨𝐥𝐝 𝐩𝐫𝐢𝐜𝐞 𝐫𝐢𝐬𝐤 𝐭𝐡𝐫𝐨𝐮𝐠𝐡 𝐎𝐓𝐂 𝐝𝐞𝐫𝐢𝐯𝐚𝐭𝐢𝐯𝐞𝐬 𝐢𝐧 𝐈𝐅𝐒𝐂

Read More

𝐑𝐁𝐈’𝐬 𝐩𝐫𝐮𝐝𝐞𝐧𝐭 𝐨𝐯𝐞𝐫𝐬𝐢𝐠𝐡𝐭 𝐢𝐧 𝐠𝐫𝐚𝐧𝐭𝐢𝐧𝐠 ‘𝐨𝐧 𝐭𝐚𝐩’ 𝐒𝐦𝐚𝐥𝐥 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐋𝐢𝐜𝐞𝐧𝐬𝐞

Read More

𝐅𝐮𝐥𝐥 𝐁𝐞𝐧𝐜𝐡 𝐚𝐭 𝐒𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐀𝐩𝐩𝐞𝐥𝐥𝐚𝐭𝐞 𝐓𝐫𝐢𝐛𝐮𝐧𝐚𝐥 𝐰𝐢𝐭𝐡 𝐭𝐡𝐞 𝐚𝐩𝐩𝐨𝐢𝐧𝐭𝐦𝐞𝐧𝐭 𝐨𝐟 𝐚 𝐧𝐞𝐰 𝐏𝐫𝐞𝐬𝐢𝐝𝐢𝐧𝐠 𝐎𝐟𝐟𝐢𝐜𝐞𝐫 𝐚𝐧𝐝 𝐓𝐞𝐜𝐡𝐧𝐢𝐜𝐚𝐥 𝐌𝐞𝐦𝐛𝐞𝐫

Read More

𝐂𝐥𝐚𝐫𝐢𝐭𝐲 𝐢𝐧 𝐂𝐮𝐫𝐫𝐞𝐧𝐜𝐲: 𝐍𝐞𝐞𝐝 𝐟𝐨𝐫 𝐠𝐫𝐞𝐚𝐭𝐞𝐫 𝐩𝐮𝐛𝐥𝐢𝐜 𝐜𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐜𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐛𝐲 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐬 

Read More