SEBI Liberalized Its Norms for Foreign Portfolio Investment with an Indian Link
Recently, the capital markets regulator Sebi has liberalised its norms for Foreign Portfolio Investment (FPI) with an Indian link. Since, the current account deficit widens and global financial turbulence looms, it makes little sense to throttle foreign fund inflows.
SEBI sought to clamp down on seeming “round-tripping” of funds back to domestic markets but now the new norms of transparency are slated to kick in two years later. Under the Prevention of Money Laundering Act, the new Sebi norms reiterate that know-your-client (KYC) requirements for FPIs would need to be as per the rules.
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