Brief Overview:
New reforms for FPIs are all set to streamline onboarding of an FPI including by introducing a single window access and a dedicated market portal.
Technical Details:
Key highlights of proposals made in the SEBI meeting in the FPI space
1) SWAGAT-FI Framework
Single Window Automatic & Generalised Access for Trusted Foreign Investors to facilitate easier investment access for low-risk foreign investors by simplifying registration & minimising repetitive compliance.
2) Unveiling of ‘India Market Access’ Portal
A dedicated digital platform for FPIs that consolidates regulatory information and streamlines compliance processes, addressing long-standing concerns about fragmented access.
3) Retail Scheme Registration for FPIs
Retail schemes in IFSCs with a resident Indian sponsor or manager may register as FPIs.
4) Investment by Indian MFs in Overseas MFs/UTs
Operationalize approved framework of allowing Indian mutual funds to invest in overseas MFs/UTs by amending the FPI framework. Now permitting such overseas MFs/UTs to register as FPIs and include Indian mutual funds as constituents.
Takeaways:
While there have been quite a few changes in the FPI space; the ongoing efforts to smoothen the market access and enhance market depth bolster India’s position as a preferred investment destination.
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