SEBI simplifies norms for foreign investors EMPOWER IAS

SEBI simplifies norms for foreign investors

 

In news:

• The Securities and Exchange Board of India (SEBI) has simplified the compliance and operational requirements for foreign portfolio investors (FPIs), to make the regulatory framework more investor friendly.

 

Important facts:

• SEBI will examine various issues on 35% minimum public shareholding plan
• The SEBI board, which meet recently decided to do away with the requirement that every FPI should have at least 20 investors — known as broad-based in regulatory parlance — while simplifying the KYC (or Know-Your-Customer) document requirement for overseas investors.

 

Focus areas:

• 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.
• The regulator has also allowed central banks of countries that are not members of Bank for International Settlement (BIS) to register as FPIs in India since, as per SEBI, such entities are “relatively long term, low risk investors directly/indirectly managed by the government”. 

 

Source)

https://www.thehindu.com/business/sebi-simplifies-norms-for-foreign-investors/article29214341.ece