In a relief to FPIs, markets regulator Sebi on Tuesday extended the deadline by two months till December for providing a list of beneficial owners, and assured them that issues raised will be looked into by an expert panel.

The regulator, in April, had asked Category II and III foreign portfolio investors (FPIs) to provide list of their beneficial owner (BO) in a prescribed format within six months.

Now, in a circular issued today, Securities and Exchange Board of India (Sebi) said it has extended the deadline to provide such list to 31 December 2018.

The decision comes after Sebi received representations from market participants, seeking review and additional time for complying with the guidelines.

BO is the natural person, who ultimately owns or controls an FPI.

Besides, the regulator said that a working group headed by HR Khan, former deputy governor of Reserve Bank of India (RBI), will now look into the various issues raised by FPIs.

Further, Sebi said that appropriate view in the matter will be taken after receiving the recommendations of the working group.

The expert group was formed by the regulator in March to advise Sebi on redrafting the FPI Regulations for simplification and to advice on any other issue relevant to such investors.

According to the regulator, the existing FPI structure, not in conformity with the rules, is now required to change or close their existing position in Indian securities as well as provide the relevant documents by the end of December.

In April, Sebi had also asked FPIs to disclose name and address of the beneficial owner; whether they are acting alone or together through one or more natural persons as group, tax residency jurisdiction, BO group’s percentage shareholding capital or profit ownership in the FPI.

In a major revamp, Sebi in 2014 had released norms that had clubbed different categories of foreign investors into a new class called FPIs.

Under the regime, FPIs have been divided into three categories as per their risk profile and the KYC (know your client) requirements, while other registration procedures have been made simpler for them.