Source: BS
Context:
The Securities and Exchange Board of India (SEBI) is planning additional relaxations to simplify the registration process for Foreign Portfolio Investors (FPIs), including a common know-your-client (KYC) framework and wider adoption of India Digital Signature. These moves build on recent measures aimed at making India a more attractive investment destination.
Key Highlights:
- Digital Ease:
- SEBI to integrate India Digital Signature with the Common Application Form (CAF) for FPIs.
- Expected to reduce paperwork and streamline documentation.
- Common KYC:
- Discussions underway with the Reserve Bank of India (RBI) for a common KYC requirement across banks and FPIs.
- Aimed at reducing duplication and easing compliance for low-risk FPIs.
- Swagat-FI Framework:
- Applies to trusted FPIs (sovereign wealth funds, pension funds, government-related entities).
- Registration renewal cycle extended to 10 years (earlier 3 years).
- One-time KYC fee of $2,500 for a 10-year block instead of the three-year cycle.
- Exemptions from the 50% aggregate contribution cap for NRIs and OCIs.
- Boost to Investments:
- Combination of FVCI (Foreign Venture Capital Investor) and FPI registration expected to boost unlisted investments.
- SEBI now reaches out directly to FPIs/custodians if application processing exceeds a month.
- Surge seen in FPI registrations; the US, Singapore, Luxembourg, and Ireland dominate assets under custody.
- New Platform:
- SEBI to launch India Market Access, a platform for FPIs to seek regulatory information.
