Sebi's move to ease norms for FPIs likely to attract West Asian banks

Doing away with the need for broad-basing of funds is expected to attract several new offshore funds to the country

The Securities and Exchange Board of India’s (Sebi’s) move to ease norms for foreign portfolio investors (FPIs) may bring in millions of dollars into India from cash-rich central banks, particularly those from West Asia, as well as attract new funds to the country.

On Wednesday, the regulator said central banks — that are not members of the Bank for International Settlements — will be eligible for FPI registration. This would enable central banks from over 60 countries, including those from Mauritius, Cyprus, and the West Asian ones such as Abu Dhabi, Dubai, Kuwait, Oman, and Qatar to invest as FPIs.