Working With RBI To Ease Market Access For FPIs: SEBI Chair Tuhin Kanta Pandey

Foreign portfolio investors (FPIs) weigh investment prospects across various markets and weigh returns after costs when determining where to allocate capital, stated SEBI Chairman Tuhin Kanta Pandey. According to Moneycontrol, Pandey emphasized the regulator's responsibility to comprehend investors' apprehensions and streamline procedures as much as feasible. Pandey addressed this during the Commodity and Capital Market Participants Association of India's 12th international convention in New Delhi.

Pandey mentioned that SEBI had already streamlined the enrollment procedure for FPIs and enhanced their market access. The regulator is collaborating with the Reserve Bank of India (RBI) on additional measures, he noted, stressing the necessity for coordination between the two institutions. FPI inflows have reached $800 billion in FY27 thus far, Pandey reiterated, while reiterating that foreign investors evaluate returns across markets on a net basis.

He added that benchmark yields in other emerging economies could also sway investment decisions. Pandey commented on the surge in investments tied to artificial intelligence, stating the sector might be experiencing an excess of activity and that a balancing phase could eventually take place. SEBI has recently authorized FPI participation in non-agricultural commodity derivatives.

Pandey also highlighted the introduction of futures contracts linked to corporate bond indices as a significant development for India's debt market. He stated that the regulator had completed the necessary regulatory and technical groundwork, although wider participation would require time. Corporate bond index futures derive their value from an index of corporate bonds, enabling market participants to manage exposure to fluctuations across the broader corporate bond market.