Sebi eases access norms for investment by foreign portfolio investors

Overseas funds have been spooked by several policy measures taken by the government in the past few years

The Securities and Exchange Board of India (Sebi) has opened up the Indian capital markets to clients of global private banks, which can invest in stocks without having to go through registration or compliance requirements.
 
Until now, foreign banks were allowed to do propriety trades only. However, now they have been allowed to invest in domestic securities on behalf of their clients.
 
Sebi announced the move last week in a circular titled “Easing of access norms for investment by foreign portfolio investors”.
 
Experts say the new measure, which resembles the participatory note (p-note) framework, could be a