The Reserve Bank has proposed that two depositories NSDL and CDSL will act as the single point source of information on foreign investments in securities issued by Indian companies.
"It is proposed to amend the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000 to mandate that foreign investment by non-residents, including non-resident Indians, on repatriation basis can be made in equity, debt and any other approved securities only in dematerialised form," RBI said in a statement.
Consequently, the depositories, namely, the National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) would act as the single point source of data and information on the extent and nature of foreign investment in securities issued by Indian companies, investment vehicles, etc, it said.
"This will facilitate easy and comprehensive availability of information for the Indian company receiving foreign investment as well as for effecting monitoring by various regulators and is expected to contribute to the ease of doing business by making regulatory compliance easier for the companies receiving foreign investment and also facilitating regulatory monitoring," it said.
The RBI has invited comments from stakeholders and experts in the area by May 25.
