Photo: Aniruddha Chowdhury/MintA Securities and Exchange Board of India (Sebi) working group has proposed simpler rules for foreign portfolio investors (FPIs) that will increase direct investment by them in Indian equities and reduce investments through opaque channels such as participatory notes (P-notes). The working group has recommended that such banks be given preferential treatment to meet compliance norms. The working group has recommended some relaxations on this criterion,” said one of the three people familiar with the matter. “There are recommendations to allow debt allocation on an on-tap system and ease reporting/settlement requirements applicable to FPIs,” said the second person, who is consulting with the working group. “The working group has been in consultation with the market participants and Sebi on the issues that are faced by FPIs while investing in India.

Source: Mint September 07, 2016 22:07 UTC