Scraps broad-based criteria, eases Know-Your-Customer rules; FPIs had sold shares worth over Rs.22,000 cr. in July, August
Mumbai: At a time when foreign investors have been selling Indian shares in huge quantum, 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.
The SEBI board, which met here on Wednesday, 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.
“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,” stated a SEBI release.
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