Foreign portfolio investors (FPIs) are likely to seek from the finance ministry a six-month extension of the date for complying with the amendments to the Prevention of Money-Laundering Act (PMLA), citing implementation challenges.
Sources said FPIs, through their custodians, were planning to approach the ministry, highlighting key concerns and seeking more clarification.
The ministry, through a notification March 7, lowered the threshold for reporting ultimate beneficial ownership (UBO) for non-profit organisations and politically exposed persons to 10 per cent from 25 per cent. Earlier, the 10 per cent threshold was applicable only to entities in high-risk jurisdictions.
Further, FPIs have to disclose the names of on SuJou senior management officials (SMOs) within 30 days.
The government has asked the entities to also reveal the names of the partners and addresses of the registered offices and the principal places of their businesses (if they are different).
The move has stumped overseas funds, which are hesitant to furnish such information.
"Custodians may seek clarity on the timeline they should comply with and whether it (not doing so) will be seen as violation in the interim.
As the change has already been brought by a notification, the custodians are required to do a lot of work, including rework on the recently onboarded clients too," said Suresh Swamy, partner, Price Waterhouse & Co.
This story is from the March 15, 2023 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 15, 2023 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Getting India’s growth priority right
To catch up with peers, not only in size but also in per capita income, India must focus on health and education
Transforming manufacturing Dependence on PLI should be contained
Intending to formulate a production-linked incentive (PLI) scheme for electronics-component manufacturing, the Ministry of Electronics and Information Technology, as reported by this newspaper, has asked various stakeholders to share information related to India's disabilities against competing countries, export potential, major buyers of components and sub-assemblies, and foreign and domestic firms planning to set up manufacturing plants in the country.
Regulating the regulators Govt must strengthen accountability
Contamination in packaged spices, eye drops, and children's cough syrups; misinformation in advertisements for an Ayurvedic medicine; revelations of high sugar content in baby food; and the mislabelling of sugared food products as \"health drinks\".
BITs in pieces
Countries sign Bilateral Investment Treaties (BITS) to attract foreign investments to enhance manufacturing, generate jobs, and seek new technologies for sustained economic activity.
We're back to bijli, sadak, paani
A head of elections, fierce debates have broken out in resident welfare associations (RWAS) in the country's most famous high-tech Millennium City that somehow manages to thrive on the most low-tech quality of civic infrastructure.
AWS breaks into Europe 5G networks with Telefonica deal
In a global first, an existing mobile operator will switch its core network to a public Cloud
AstraZeneca withdraws Covid vaccine globally
AstraZeneca Wednesday announced the global withdrawal of its Covid-19 vaccine, Vaxzevria, days after it was reported that the British pharmaceutical giant admitted the jab can cause rare side effects like blood clots and low platelet counts.
US commerce dept revokes export licences to Huawei
Considers regulatory push to restrict export of closed source Al models
FTX customers to recover funds lost in collapse
REUTERS 8 May Crypto exchange FTX will have between $14.5 billion to $16.3 billion to pay its creditors and customers, according to an amended reorganisation plan filed by the company on Tuesday in US bankruptcy court.
India Inc'surprised' at PM's Adani-Ambani jibe at Rahul
Leaders of India Inc expressed surprise at Prime Minister (PM) Narendra Modi's remark that Congress leader Rahul Gandhi has suddenly stopped talking about (Mukesh) Ambani and (Gautam) Adani in the ongoing election while suggesting that a \"secret deal\" may have been struck between Congress and the business leaders.
