(LiveMint)
Easing the regulatory framework for foreign portfolio investors, Sebi on Wednesday simplified KYC requirements for them and permitted them to carry out off-market transfer of securities. The proposals were cleared by the Sebi’s board during its meeting here as part of efforts to simplify and expedite the registration process for foreign portfolio investors (FPIs).
Apart from doing away with the broad-based eligibility criteria for institutional FPIs, under the new framework, FPIs would be classified into two categories instead of three. “Documentation requirements for KYC have been simplified,” Sebi said in a release after the board meeting. FPI regulations have been redrafted based on the recommendation of a committee headed by former RBI deputy governor H.R. Khan.
The board also amended regulations concerning credit rating agencies. Sebi, on Wednesday, also approved changes to the norms prohibiting insider trading. The requirements for issuance and subscription of offshore derivative instruments (ODIs) have also been rationalised.
