Call us for Counseling - 9580048004, For Support - 8860807050.  

Tags Current Affairs

SEBI simplifies norms on foreign investors

Date: 24 August 2019 Tags: Financial Markets



The Securities and Exchange Board of India (SEBI) has simplified the compliance and operational requirements for foreign portfolio investors (FPIs), to make the regulatory framework more investor friendly.



  • The Securities and Exchange Board of India is the regulator for the securities market in India.

  • Portfolio investments are investments in the form of a group (portfolio) of assets, including transactions in equity, securities, such as common stock, and debt securities, such as banknotes, bonds, and debentures.


  • SEBI has decided to do away with the requirement that every FPI should have at least 20 investors which is known as broad-based in regulatory parlance. It has also simplified the KYC (or Know-Your-Customer) document requirement for overseas investors.

  • It has also allowed central banks of countries that are not members of Bank for International Settlement (BIS) to register as FPIs in India.

  • The regulator has amended the Prohibition of Insider Trading Regulations to include a clause to reward whistle-blowers up to Rs. 1 crore if the information leads to a disgorgement order of at least Rs.1 crore.

  • SEBI  has also brought in clauses to protect the informant from victimisation in the form of termination, suspension or demotion, among other things.

Implications of Step

  • proposed regulations is to simplify and rationalise the existing regulatory framework for foreign portfolio investors in terms of easing the operational constraints and compliance requirements.

  • This is a much-needed boost to the FPI route, which had been languishing on account of multiple issues in the past few months.

Notice (8): Undefined variable: quizpole [ROOT/plugins/Studyiq/src/Template/Pages/tagdetails.ctp, line 161]