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    Foreign investors face demat hurdle in closing FDI deals

    Banks are also using their discretion in interpreting Press Note 3 in the absence of clarity.

    Synopsis

    FPIs have to undergo strict KYC procedure for registering with Sebi.

    Mumbai: Many foreign direct investment (FDI) deals may run into a last-mile operational hurdle with overseas entities finding it difficult to open a demat account.Closing an FDI transaction requires the offshore entity to have a demat account with a custodian bank for holding the shares of the Indian company which receives capital. This requires submission of self-certified documents by authorised signatories, notarisation of certain power of
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    The Economic Times