SEBI approved Major Reforms to Attract Overseas Investors

SEBI ushered in major reforms to attract overseas investors. It has announced new Foreign Portfolio Investor regulations for easier registration process and operating framework for investors from abroad.  The new class of investors - FPIs - will encompass all Foreign Institutional Investors, their sub-accounts and Qualified Foreign Investors. They will be divided in three categories as per their risk profile.

The Know Your Client - KYC requirements and other registration procedures will be much simpler for FPIs compared to current practices. The SEBI has also decided to grant them a permanent registration.

SEBI also approved setting up 'Designated Depository Participants which will register FPIs on behalf of the market regulator subject to compliance with KYC norms.