For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

SEBI Eases Rules For Foreign Investors And Share Buybacks

By Staff
|

On Wednesday, SEBI eased the regulatory and compliance framework for foreign portfolio investors (FPI) by broad-basing their classification, simplifying their registration requirements and permitting them to carry out off-market transfer of securities.

Further, FPIs would now be classified into two categories instead of three.

SEBI Eases Rules For Foreign Investors And Share Buybacks
 

The market regulator also relaxed rules on share buybacks for listed firms that own non-banking financial companies and housing finance company subsidiaries. The move will remove the restriction of debt-to-equity ratio norms for conglomerates as these were calculated on a consolidated basis for guiding buybacks.

The new framework for FPIs is expected to benefit the stock markets that have been dull after the introduction of higher tax surcharge in the 2019 Budget presented by FM Nirmala Sitharaman on 5 July.

Foreign investors started withdrawing funds from the Indian equity markets after the introduction of higher tax surcharge on the super-rich. In the last two months, FPIs have sold shares in Indian companies worth $3.07 billion.

FPI regulations have been redrafted based on the recommendation of a committee headed by former RBI deputy governor H.R. Khan.

The requirements for issuance and subscription of offshore derivative instruments (ODIs) have also been rationalised.

Offshore funds floated by mutual funds would be allowed to invest in the country after registration as FPIs.

Read more about: sebi fpi share buyback
Story first published: Thursday, August 22, 2019, 9:57 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more