Attention of the Authorized Dealers (ADs) is invited to para 3(b) of the FEPD CIRCULAR NO. 02 DATED 09.01.2013 wherein it is mentioned that Beneficiary Owner (BO) account of the foreign investor is to be opened with brokerage firm. It is now being clarified that such account may also be opened with custodian bank concerned. Hence, the said para will be replaced as follows:
“(b) Only commission/service charge earned from trading of securities of the foreign investors through BO Account opened with the concerned brokerage firm/securities custodian bank and NITAs (opened with any AD) shall be considered for sharing with the foreign brokerage firm after deduction of taxes and other items (if any) for subsequent remittance abroad in accordance with the agreement signed between the two parties.”
Other instructions of the aforementioned FEPD Circular will remain unchanged.
Please bring the content of this circular letter to the notice of all concerned.