SEBI Eases Norms For Foreign Portfolio Investors Amidst Sell-Off In Indian Equities

Amidst the large-scale sell-off of Indian equities by foreign investors, the Securities and Exchange Board of India (SEBI) has stepped in and decided to ease operational and compliance requirements for foreign portfolio investors (FPIs), reports The Hindu.

One of the main requirements done away with was the need for an FPI to have a minimum of 20 investors. Apart from this, the KYC or Know-Your-Customer document requirement has seen simplification.

“The key focus of the proposed regulations is to simplify and rationalise the existing regulatory framework for foreign portfolio investors in terms of easing the operational constraints and compliance requirements,” read a release by SEBI.

Moreover, central banks of those countries which do not have Bank of International Settlements (BIS) membership will also now be permitted to register as FPIs in India.

The decision to implement these changes in making it easier for FPIs to invest in Indian equities comes following foreign investors selling Rs 22,000 crore of Indian shares in July and August.