Sebi eases FPI registration norms

Markets regulator Sebi today decided to ease the entry norms for overseas investors by permitting a direct access to Foreign Portfolio Investors (FPIs) from eligible jurisdictions.
After its board meeting, Sebi Chairman Ajay Tyagi said that the regulator has rationalised "fit and proper" criteria for FPIs as well as simplified broad based requirements for such investors.
The Securities and Exchange Board of India (Sebi) will issue a discussion paper on easing registration of FPI.
The regulator has decided to expand "the eligible jurisdictions for grant of FPI registration to category I FPIs by including countries having diplomatic tie-ups with India".

Besides, it has permitted FPIs, operating under the Multiple Investment Managers (MIM) structure and holding foreign venture capital investors (FVCI) registration, to appoint multiple custodians.
In a major revamp, Sebi in 2014 had released norms that had clubbed different categories of foreign investors into a new class called FPIs.
Under the regime, FPIs have been divided into three categories as per their risk profile and the KYC (know your client) requirements, while other registration procedures have been made simpler for them.
The norms were put with the objectives to rationalise various foreign portfolio investment routes and simplify the procedures to attract more foreign funds.