After a gap of nearly two decades, the norms for overseas corporate bodies (OCBs) are likely to be changed.
The OCBs, set up by non-resident Indians (NRIs) and operating in the stock markets, are likely to be subjected to the minimum net worth norms.
Besides, the OCBs are likely to be treated at par with foreign institutional investors (FIIs) as far as their stock market operations are concerned.
The norms regarding OCBs, which came into force in 1982, have never been revised. OCBs are not required to register either with the Securities and Exchange Board of India (Sebi) or the Reserve Bank of India (RBI). However, while repatriating money overseas, they are subjected to Fema regulations.
OCBs and FII sub-accounts have allegedly played major roles in the recent stock market scam.
Sebi has noted before the JPC probing the Ketan Parekh scam that these OCBs
