Sebi is set to review compliance norms governing foreign portfolio investors and issue a consultation paper as part of an effort to align the framework with global standards.
Consultation paper to guide review
The proposed consultation paper will set out the basis for stakeholder consideration of the existing compliance requirements. The move signals a review of the rules applicable to foreign portfolio investors, although details of the proposed changes and the timing of the paper were not provided.
Focus on global alignment
Sebi’s stated objective is to bring the FPI compliance framework in line with global standards. The review could therefore shape the future direction of requirements for foreign investors operating in the market, subject to the consultation process.
Further information on specific amendments will depend on the consultation paper and any subsequent decisions by Sebi.