Active Stocks
Sat May 18 2024 12:49:03
  1. Tata Motors share price
  2. 952.95 0.76%
  1. Power Grid Corporation Of India share price
  2. 316.85 1.12%
  1. Tata Steel share price
  2. 167.90 0.39%
  1. ITC share price
  2. 436.50 -0.02%
  1. State Bank Of India share price
  2. 821.30 0.42%
Business News/ Markets / Stock Markets/  Sebi eases requirements for FPIs

Sebi eases requirements for FPIs

FPIs to be recategorized into two categories from three currently
  • Sebi allows offshore funds of Indian mutual funds to invest as FPIs as it approves recommendations by H.R. Khan committee on FPI norms
  • Sebi chairman Ajay Tyagi (File photo: Mint)Premium
    Sebi chairman Ajay Tyagi (File photo: Mint)

    Mumbai: Easing the regulatory framework for foreign portfolio investors, Sebi on Wednesday simplified KYC requirements for them and permitted them to carry out off-market transfer of securities.

    The proposals were cleared by the Sebi's board during its meeting here as part of efforts to simplify and expedite the registration process for foreign portfolio investors (FPIs).

    Apart from doing away with the broad-based eligibility criteria for institutional FPIs, under the new framework, FPIs would be classified into two categories instead of three.

    "Documentation requirements for KYC have been simplified," Sebi said in a release after the board meeting.

    FPI regulations have been redrafted based on the recommendation of a committee headed by former RBI deputy governor H.R. Khan.

    The board also amended regulations concerning credit rating agencies. Sebi, on Wednesday, also approved changes to the norms prohibiting insider trading.

    The requirements for issuance and subscription of offshore derivative instruments (ODIs) have also been rationalised.

    Offshore funds floated by mutual funds would be allowed to invest in the country after registration as FPIs.

    Among others, entities established in the International Financial Services Centre (IFSC) would be deemed to have met the criteria for FPIs.

    "FPIs shall be permitted for off-market transfer of securities which are unlisted, suspended or illiquid, to a domestic or foreign investor," the release said.

    Besides, registration for multiple investment manager (MIM) structures has been simplified.

    To attract more overseas funds into the market, central banks that are not members of the Bank for International Settlements would be eligible for registration as FPIs.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed - it's all here, just a click away! Login Now!

    This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

    Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
    More Less
    Published: 21 Aug 2019, 05:44 PM IST
    Next Story footLogo
    Recommended For You

    Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

    Let’s get started