With increasing number of people from multiple countries investing in India and vice versa, there is a need to have a system that could track all such financial transactions in a transparent manner. In order to enable an automatic and seamless exchange of financial data between countries, India has entered into an Inter-Governmental Agreement with the US.
As per this agreement, every Indian investor needs to provide an additional KYC and compliance form, apart from the regular KYC information, at the time of operating any financial or investment account.