Thread by @MFkiRani

(1/n) Ease of FPI Norms by SEBI on Aug 21
Key focus - to simplify and rationalize the existing regulatory framework for FPI - easing the operational constraints, expedite the registration process & compliance requirements, documentation for KYC simplified

(2/n) Broad based eligibility criteria for institutional foreign investors scrapped. What was broad based requirement? Abroad based fund meant a fund, established or incorporated outside India, which has min 20 investors, with no investor holding > 49% of shares or units of fund

(3/n) FPIs may be recategorized into 2 categories - I and II, instead of the present requirement of three categories
Current Categories are - Category I includes foreign investors related with the government such as central banks, government agencies, sovereign wealth funds

(4/n) (b) Cat II includes regulated entities like banks, AMCs, investment managers etc. & broad-based funds, which may be regulated like MFs, investment trusts etc. or non-regulated; and (c) Category III includes investors, which are not covered under I & II

(5/n) Central Banks shall also be eligible for FPI registration (those ot the members of BIS (Bank for International Settlement). Offshore funds floated by Indian MFs shall be permitted to invest in India after registration as FPI. Contd the current approach of allowing buybacks.

flexibility to MFs to invest in unlisted NCDs max of 10% of debt portfolio. T obe implemented in a phased manner by June 2020

(7/n) SEBI will have a provision whereby there can be agreement between Creedit Rating Agency & issuer, wherein CRA will have consent to to obtain details of the existing and/ or future borrowing of the issuer, its repayment and any delay or default in servicing of such borrowing

(8/n) Apart from above, there have been changes related to listing of debt securities by municipality, certain definitions of insider trading participants.

#SEBI #FPI #investors #Mutualfundsahihai #MutualFunds #StockMarket #Stock #stocks #invest #investments #investing #investingnews #MarketsNews

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