Sebi to review FPI rules, align with global norms
The Securities and Exchange Board of India is set to release a consultation paper aimed at refining compliance requirements for foreign portfolio investors. Chairman Tuhin Kanta Pandey highlighted the progress in the onboarding of international funds while pointing out the heavy compliance burden in India. Sebi is also considering the possibility of self-listing for stock exchanges despite the…
Mumbai: The Securities and Exchange Board of India (Sebi) is set to review compliance requirements for foreign portfolio investors (FPIs) and align them with global standards, as announced by Sebi Chairman Tuhin Kanta Pandey. The regulator has been working to streamline access, simplify procedures, and harmonize compliance requirements with those in major global jurisdictions.
However, some requirements remain more burdensome than those in other countries. Sebi is reviewing these requirements and will issue a consultation paper to seek input on bringing them into line with international norms. Self-listing of stock exchanges is not permitted in India due to the presence of multiple exchanges, and Sebi is considering the merits of this approach.
The regulator is also exploring the possibility of reviving closed regional stock exchanges, though this will depend on liquidity considerations and the ability to make exchanges technologically feasible. Additionally, from November 1, direct plans will be the default option on digital platforms of asset management companies (AMCs), with investors being informed about higher expense ratios for regular plans.
Sebi is reviewing the framework around mainboard initial public offerings and follow-on public offers.
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