New Delhi : A working group of the Securities and Exchange Board of India (Sebi) has recommended relaxing foreign fund rules for non-resident Indians. Indian markets were hit by uncertainty emerging from concerns over an April circular from Sebi that said foreign investment rules for companies of Indian origin had been tightened. Non-resident Indians may be allowed to invest as foreign portfolio investment (FPI) if a single holding is under 25 per cent and group holding is under 50 per cent in a fund, Sebi’s panel said.
The committee suggested that erstwhile PIOs should not be subjected to any restrictions, while it also recommended allowing clubbing of investment limits for well-regulated and publicly held FPIs having common control.
It also favoured doing away with additional KYC documentation requirement for beneficial owners in case of government-related FPIs.