India gives massive relief to foreign investors after big controversy

Providing relief to foreign portfolio investors, Securities and Exchange Board of India (Sebi) said a revised circular on know-your-customer (KYC) norms will be issued soon. “The proposed draft circular and proposed amendments in Sebi (FPI) Regulations, 2014 were discussed by the Board and broadly agreed upon. The revised circular, in this regard, will be soon issued separately,” it said in a press release.

Earlier this month, the FPI lobby group raised concerns that the Sebi circular on KYC norms restricting non-resident Indians (NRIs) and overseas citizens of India (OCIs) from being beneficial owners of FPIs result in an outflow of $75 billion from the Indian market. Sebi soon lashed out, saying the claims were “irresponsible” and “preposterous”.

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It has approved a regulatory framework to allow foreign entities to trade in commodity derivatives market, except for sensitive commodities. The minimum net worth required for the eligible foreign entities to participate in domestic commodity derivatives markets is $500,000.

Source: DNA Money