SEBI gift to foreign portfolio investors |
India`s market regulator, Securities and Exchange Board of India, on Wednesday eased the regulatory and compliance framework for foreign portfolio investors by broad-basing their classification, and simplifying their registration, entry and know-your-customer norms in a bid to boost investments. SEBI also relaxed the buyback norms for listed firms that own non-banking financial companies or the NBFCs and housing finance companies (HFCs) subsidiaries. This move will free conglomerates from the restrictive debt-to-equity ratio (DER) norms calculated on a consolidated basis for guiding buybacks. The new FPI norms are the outcome of the regulator`s board meeting on Wednesday, which collapsed 57 circulars and 183 FAQs regarding FPIs into a single circular. There are now expectations that the Union finance ministry will provide a special carve-out for FPIs from the higher tax surcharge announced during the 2019-20 budget. FPIs have been withdrawing from Indian equities after the finance minister introduced higher tax surcharge on the super-rich in the budget in July.
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