Market regulator Sebi mulls diluting controversial FPI KYC norms: Sources

April circular likely to exempt PIOs, publicly pooled funds

The market regulator, Securities and Exchange Board of India (Sebi), may soon dilute some of the controversial provisions notified in its April 10 circular on foreign portfolio investors (FPIs).

Sources say the regulator is mulling exempting people of Indian origin (PIOs) from the ambit of the new Know Your Customer (KYC) norms. Publicly pooled funds could get more leeway with regards to investment ceilings in individual companies.

Following the backlash over the April 10 circular, Sebi has deferred the implementation of the new norms by two months and has referred the matter to the H R Khan-led committee, set up