Single regime likely for FPI, NRI fund outflows

FPJ BureauUpdated: Wednesday, May 29, 2019, 05:39 AM IST
article-image

New Delhi: A Sebi panel may soon suggest merger of foreign portfolio investment and NRI/OCI routes to bring in a single regime for foreign investors and regulate NRI fund inflows, senior officials said. Besides, the panel may suggest to the capital markets regulator to clarify suitable actions that FPIs need to take for divestment or re-classification of holdings as per the FDI limits after consultation with the Reserve Bank, they said. Further, it is likely to suggest Sebi to consult the government to evolve a more objective criteria for defining high-risk jurisdictions.

The panel headed by former RBI Deputy Governor H R Khan, which is reviewing FPI regulations, may soon suggest these measures. “The panel is examining whether any recommendation to merge the FPI and NRI/OCI (Overseas Citizens of India) routes of investment can be made to the government and the Reserve Bank,” the official said. Under Portfolio Investment Scheme, NRIs can directly invest in Indian firms and buy equity stocks and mutual funds among others. NRI investments are controlled by foreign exchange management act and follow Sebi regulations.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

Elon Musk: Twitter may exceed 1 billion users in 12-18 months

Elon Musk: Twitter may exceed 1 billion users in 12-18 months

India now has 2nd largest gamer base in the world with over 396 million gamers

India now has 2nd largest gamer base in the world with over 396 million gamers

Winter product trends pickup, FMCG makers hopeful of rural growth in coming quarter

Winter product trends pickup, FMCG makers hopeful of rural growth in coming quarter

Cumulative recovery rate under insolvency resolution falls to 30.18% in September Quarter: Report

Cumulative recovery rate under insolvency resolution falls to 30.18% in September Quarter: Report

Godrej Properties hopes to launch Rs 8,000-cr luxury housing project in Delhi by March

Godrej Properties hopes to launch Rs 8,000-cr luxury housing project in Delhi by March