Sebi relaxes access norms for FPIs
The Securities and Exchange Board of India( Se bi) has eased the norms for foreign portfolio investors (FPIs), doing away with the prior-approval requirement in case of change in local custodian. The due diligence requirements at the time of change of custodian for FPI shave also been relaxed.
After consultations with stakeholders, Sebi has decided to make changes in ext ant regulatory provisions” to ease the access norms for investment by FPIs”, acircular issued on Thursday said. The need for seeking prior approval in case of change in local custodian or Designated Depository Participant( D DP) has been discontinued for FP Is.
“Atthattime, taking specific request letter from each FPI regarding change of local custodian may create operational and logistical challenges,” Sebi said as it relaxed the norms. With respect to the process of change of local custodian or DDP by an FPI, the circular said the new entity can rely on the due diligence carried out by the old one.
The Business Standard, New Delhi, 17th February 2018