SEBI to review the rules that FPI?s must follow to invest in India; to bring Indian rules closer to international standards

SEBI Chairman Tuhin Kanta Pandey has said that the market regulator will review the rules that foreign portfolio investors must follow to invest in India. He said SEBI will issue a consultation paper to seek suggestions on bringing Indian rules closer to international standards, while ensuring investor protection and market safety. Acknowledging that some of India?s rules are stricter than those in other major countries, he said, the review aims to make it easier for foreign investors to participate in Indian markets. Mr Pandey said, SEBI has already taken several steps to simplify the process for foreign investors, including easier access to markets, digital registration and simpler procedures.

On whether stock exchanges should be allowed to list their own shares on their platforms, Mr Pandey said the idea has neither been rejected nor is it under active consideration. Although some countries allow this practice, India follows a different approach because it has multiple stock exchanges and must guard against possible conflicts of interest. Mr Pandey also stressed that domestic savings will continue to play an important role in developing India?s markets. At the same time, foreign investment can bring in more capital and valuable expertise. He said India?s market value, compared with the size of its economy, has increased from 69 per cent in the financial year 2015-16 to around 130 per cent now. He also said the total value of outstanding corporate bonds has reached nearly 61 lakh crore rupees. This is equal to about 55 per cent of the bank credit given to industry and services. Mr Pandey said the next phase of market development will focus on helping businesses raise funds, encouraging more people to invest and ensuring that India?s financial markets remain fair, strong and trustworthy.

Powered by Capital Market - Live News