 "States' issuance of discom bonds has also worried the FPI, and they see it as a potential stress")
There is lack of clarity in the manner in which indirect transfer provisions (ITP) would apply to foreign portfolio investors (FPIs) after their re-categorisation into two segments. They are currently divided into three categories at present.
A circular put out by the market regulator, the Securities and Exchange Board of India (Sebi), last Wednesday had stated that FPIs will be re-categorised into categories I and II.
According to the current regulations, investments held by category I and category II FPIs are excluded from indirect transfer provisions. Category III FPIs, however, are subject to these provisions and it remains to be seen if
