The Securities and Exchange Board of India (Sebi) on Thursday proposed a mechanism to allow additional time for foreign portfolio investors (FPIs) to liquidate their assets even after the expiry of their registration.
Currently, there is no provision to deal with securities lying frozen in the demat accounts of FPIs whose registration has expired.
Nearly Rs 3,300 crore of 55 FPIs, whose registrations have expired, lie frozen as of June 2023.
Further, 20 such FPIs had written off their securities valued at around Rs 94 crore.
Even after the write-off, these securities remain frozen in demat accounts.