2,500 new FPIs register with Sebi in Apr-Dec

More than 2,500 new foreign portfolio investors (FPIs) registered with Sebi in April- December period of the current fiscal on several measures taken by the capital markets watchdog.

About 2,900 FPIs had received approval from Sebi last financial year.

The number of FPIs with Sebi's approval rose to 6,833 at the end of December from 4,311 at March-end, reflecting an addition of 2,522 such investors, according to the latest data from the Securities and Exchange Board of India (Sebi).

FPIs consider India as a preferred and stable market, given its macro-economic stability, long-term growth prospects and ongoing economic and social reforms, market experts said.
 

Besides, Sebi last month notified new norms to offer direct entry to well-regulated foreign investors for investing in corporate bonds, they added.

Further, Finance Minister Arun Jaitley in his Budget speech had proposed that Category I and II FPIs should be exempted from taxation on indirect transfers.

In a big revamp, Sebi had in 2014 released norms that clubbed different categories of foreign investors into a new class called FPIs.

FPIs have been divided into three categories as per their risk profile and KYC (know your customer) requirements, while other registration procedures have been made simpler for them.

They are granted permanent registration as against the earlier practice of approval granted for one or five years to overseas entities seeking to invest in Indian markets.

The registration remains permanent unless suspended or cancelled by Sebi or surrendered by FPI.