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SEBI comes out with rules for single regime for FPI and NRI fund flows.

Markets regulator SEBI has come out with rules for merger of foreign portfolio investment (FPI) and non-resident Indian/overseas citizens of India routes to bring in a single regime for foreign investors and regulate NRI and person of Indian origin fund inflows. The regulator has also exempted housing finance companies and systemically important NBFCs (non-banking financial companies) from disclosure of increase or decrease in shareholding due to encumbrance or release of encumbered shares, SEBI said in a notification. A similar exemption is already available to scheduled commercial banks and public financial institutions. In another notification dated December 31, SEBI said if single and aggregate NRI/OCI/RI holdings in assets under management of FPI are below 25 percent and 50 percent, respectively, then such persons will be allowed to be constituents of the FPI.

In case of temporary breach of investment limits, FPI will need to comply within 90 days and in case it remains non-compliant even after 90 days, no fresh purchases will be permitted and such FPI will have to liquidate its existing position in Indian securities market within 180 days.

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Publication:Pakistan & Gulf Economist
Date:Jan 13, 2019
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