Mumbai: In a bid to attract more money from overseas investors, Sebi is planning to further relax norms governing foreign portfolio investment in India.
It will soon initiate a public consultation process for making necessary changes like expansion of eligible jurisdiction for grant of FPI registration, simplification of broadbased requirements and rationalisation of fit and proper criteria.
“Currently, a single investor is not allowed to hold more than 49 per cent in a funds corpus. We are considering to relax this criteria for a certain set of investors like pension funds, insurance firms and sovereign wealth funds so that they can invest more in the Indian markets,” said Sebi chairman Ajay Tyagi.
The Sebi has decided to further tighten the norms governing the issue of participatory notes (P-notes) to prohibit the issue of such instruments for speculative purposes. It has decided to levy a fee of $1000 on each subscriber to be collected and deposited by FPI every three years.
Forensic auditor to check NSE
Sebi has decided to engage the service of forensic auditors in its probe into the misuse of co-location facility at NSE by a few large brokerage house to determine whether brokers made unfair gains in connivance with exchange officials. Sebi has already issued show cause notice to NSE and 14 key managers.
The co-location server facility allows a broker to place his or her server in the same place as that of exchanges trading engine, enabling faster access to the exchange’s order book data.
