The Securities and Exchange Board of India (SEBI) has eased up the rules surrounding foreign portfolio investors (FPIs).
The changes will mean less operational constraints and softer compliance requirements the Economic Times reported. Among other things, it has decided to remove the eligibility criteria for broadbased FPIs. At the moment, companies would need at least 200 investors to be identified as broadbased.
It also permitted them to carry out off-market transfers of securities, Business Standard reported.Additionally, the FPIs will now be divided into two categories. It was previously categorised into three categories.
SEBI has also reportedly made the rules regarding know-your-customer (KYC) less complicated.
The changes came after recommendations made by the HR Khan Committee in March 2019 to liberalize and simplify FPIs.
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