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SEBI recommends easing rules for foreign investors

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Reuters MUMBAI
Last Updated : Jun 12 2013 | 4:55 PM IST

MUMBAI (Reuters) - A committee set up by the Securities and Exchange Board of India (SEBI) has recommended merging foreign investment in India's stock markets into a single investor class as well easing registration norms for foreign buyers, in a move aimed at appeasing foreign investors.

A panel set up by the SEBI has recommended that the regulator simplify the Know Your Client (KYC) norms according to the risk profile of the investor.

The SEBI committee also recommended merging the existing categories of Foreign Institutional Investors (FIIs), their sub accounts and Qualified Foreign Investors into the Foreign Portfolio Investor (FPI) class.

"With the simplification of procedures in KYC/ Account opening and onboarding etc., the Committee believes it will make the experience for FPI of entering into India more pleasuresome and smooth, resulting in increasing inflows into India," SEBI said in a statement.

The panel also recommended opening up more sectors in India to receive venture capital funding from investors abroad. (Reporting by Himank Sharma; Editing by Jijo Jacob)

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First Published: Jun 12 2013 | 4:44 PM IST

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