Private bank route for foreign portfolio investors may be non-starter

Seems unlikely to elicit significant interest from investors after Sebi's decision to keep NRIs out

The Securities and Exchange Board of India’s (Sebi’s) decision to disallow resident Indians, non-resident Indians (NRIs) and those under the Overseas Citizen of India (OCI) category from investing through private banks has put cold water on this route. 

Sebi, in a recent circular, says private banks may invest on behalf of clients. This was in line with a consultation paper issued last June and a significant departure from the earlier position that banks only be allowed to do proprietary trade.

The relaxation was based on two conditions. One, that details of beneficial owners be provided when required by