SEBI eases rules for foreign portfolio investors to boost inflows

The Securities and Exchange Board of India (SEBI) has proposed grant of registration to Foreign Portfolio Investors (FII, QFI, Foreign citizens) within 10 days of application under the new Foreign Portfolio Investor (FPI) regime. The FPIs would be allowed to invest across a host of the capital market segments, including in shares, debentures, warrants, mutual funds, collective investment schemes, derivatives, treasury bills and government securities. Besides, they can also invest in the commercial papers, security receipts of asset reconstruction companies, perpetual debt instruments, non- convertible debentures, infrastructure debt funds and Indian Depository Receipts. However, one FPI can hold a maximum of 10% equity shares in a company, subject to the applicable sectoral caps.