From investment cap to pension funds, Sebi moots changes to FPI rules

The panel has also proposed that sovereign wealth funds should be exempted from investment caps

A Securities and Exchange Board of India (Sebi)-constituted committee has proposed wide-ranging changes to the foreign portfolio investment (FPI) regime, aimed at boosting capital flows into the country by improving ease to doing business, especially for large and well-regulated global institutions.

Liberalised investment caps, foreign direct investment (FDI)-like leeway, easy on-boarding, and permission to invest in unlisted companies ahead of their initial public offerings (IPOs) are among the 50-odd changes suggested by the panel chaired by former Reserve Bank of India (RBI) deputy governor HR Khan. The proposals are open for public comments.

“Flows of overseas funds, both through the