FPIs to access sale proceeds on settlement day

FPIs to access sale proceeds on settlement day

Brief Overview:

SEBI has initiated process improvements to make sale proceeds available to FPIs on settlement day itself.

Technical Details:

This change of FPIs receiving trade proceeds on the settlement day brings them on par in this regard with domestic institutional investors.

Previously, there were delays reported by FPIs as regards accessing sale proceeds beyond the standard ‘T+1’ settlement date mainly due to the delay in obtaining tax clearance.

This has been fixed as under the new system tax certificates for FPI sale trades executed on ‘T’ day are issued by tax consultants by 9:00 AM IST on ‘T+1’ day.

JC takeaway:

In addition to the ongoing actions taken by the regulator, this seems to be yet another step to make India an efficient investment destination for FPIs.

For further details, please see:

https://www.sebi.gov.in/web/?file=https://www.sebi.gov.in/sebi_data/attachdocs/oct-2024/1729074847614.pdf#page=1&zoom=page-width,-15,842

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