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Time of India
2 days ago
- Business
- Time of India
Govt bond push: Sebi eases compliance rules for G-Sec FPIs, KYC norms and disclosure timelines relaxed
In a move aimed at boosting long-term foreign investment in Indian debt markets, Sebi on Wednesday approved several compliance relaxations for Foreign Portfolio Investors (FPIs) that invest exclusively in Indian government securities (G-Secs). The decision, taken at the regulator's board meeting, is expected to simplify onboarding, reduce paperwork, and improve ease of doing business for these investors at a time when global interest in India's debt market is rising. 'With an objective to enhance ease of doing business through a risk-based approach and optimum regulation, the board approved the proposal to relax certain regulatory requirements for all existing and prospective FPIs that exclusively invest in G-Secs,' Sebi said in a statement, PTI reported. Currently, FPIs invest in Indian debt through the General route, the Voluntary Retention Route (VRR), and the Fully Accessible Route (FAR). Both FAR and VRR allow investments with minimal restrictions. As part of the new measures, Sebi said KYC review timelines for G-Sec FPIs will now be aligned with Reserve Bank of India (RBI) norms, resulting in fewer periodic compliance requirements. Moreover, those investing via the FAR route will no longer need to disclose investor group details. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Поза во сне может многое рассказать о вашем характере! Удивительные Новости Undo The regulator also decided to allow Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Resident Indian individuals to be part of such government securities-focused FPIs (GS-FPIs), without the restrictions that typically apply to other FPI categories. However, existing rules under the Liberalised Remittance Scheme and limits for global funds with less than 50% Indian exposure will continue to apply. In another easing of norms, Sebi set a uniform 30-day window for reporting all material changes by such investors, replacing the current requirement that varies between 7 and 30 days depending on the type of change. Sebi said these changes would apply during onboarding and any future transition between GS-FPI and other FPI categories, subject to conditions that may be specified by the regulator. India's inclusion in global bond indices such as those by JP Morgan, Bloomberg, and FTSE is expected to draw greater foreign interest in G-Secs. According to Sebi data, FPI investment in FAR-eligible bonds had already crossed Rs 3 lakh crore ($35.7 billion) by March 2025. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hans India
3 days ago
- Business
- Hans India
Sebi likey to take up key reforms today
Mumbai: Markets watchdog Sebi's board is likely to discuss a series of regulatory reforms during its upcoming meeting under the chairmanship of Tuhin Kanta Pandeyon Wednesday. One of the key agenda items is the simplification of rules and regulatory compliance for Foreign Portfolio Investors (FPIs) investing exclusively in Indian Government Bonds (IGBs) through the Voluntary Retention Route (VRR) and the Fully Accessible Route (FAR). This move is aimed at attracting more long-term bond investors to the Indian market, people aware of the development said. Currently, foreign investors can invest in Indian debt through three routes – General, VRR, and FAR. The VRR and FAR routes are comparatively liberal, as they allow investments without many of the restrictions, such as security-wise or concentration limits that apply under the General route.
Time of India
4 days ago
- Business
- Time of India
Sebi board to meet on Wednesday to discuss regulatory reforms
Markets watchdog Sebi's board is likely to discuss a series of regulatory reforms during its upcoming meeting on Wednesday. Several of these proposals have already been floated for public consultation, indicating a broader push towards refining the regulatory landscape. This would mark the second board meeting under the chairmanship of Tuhin Kanta Pandey , who assumed office on March 1. One of the key agenda items is the simplification of rules and regulatory compliance for Foreign Portfolio Investors (FPIs) investing exclusively in Indian Government Bonds (IGBs) through the Voluntary Retention Route (VRR) and the Fully Accessible Route (FAR). This move is aimed at attracting more long-term bond investors to the Indian market, people aware of the development said. Currently, foreign investors can invest in Indian debt through three routes-- General, VRR, and FAR. The VRR and FAR routes are comparatively liberal, as they allow investments without many of the restrictions, such as security-wise or concentration limits that apply under the General route. Live Events To further streamline this, Sebi proposed creating a new FPI category, IGB-FPIs, focused solely on government bond investments, according to the consultation paper issued last month. Under this, the regulator recommended easing registration and other compliance requirements for these entities. Notably, Sebi suggested that IGB-FPIs should be exempt from disclosing investor group details, since bond investments under VRR and FAR are not subject to such caps. Typically, FPIs are required to disclose their group structures for monitoring investment limits, but this requirement may no longer apply to IGB-focused investors. In addition, the board may discuss a proposal to rationalise the content of the placement document of Qualified Institutions Placement (QIP) by prescribing only the relevant information regarding the issue, people aware of the development said. Presently, in QIPs, the issuer is required to disclose the details in the placement document as prescribed under the ICDR (Issue of Capital and Disclosure Requirements) norms. The board of Sebi may review a proposal on providing flexibility to alternative investment funds to offer co-investment opportunities to investors within the AIF structure, they added. Co-investment, in AIF industry parlance, refers to the offering of the investment opportunity to the investors for additional investment in unlisted securities of an investee company, where an AIF is also making or has made the investment. PTI
The Hindu
31-05-2025
- Business
- The Hindu
FPI inflows into equities at 8-month high in May 2025
Foreign Portfolio Investors (FPI) invested ₹19,860 crore, the highest in eight months, in May, according to data from NSDL. Foreign investors invested five times more than they invested in the previous month into Indian equities. The FPI investments came in positive for the second consecutive month in May after recording a net outflow for three consecutive months. This assumes significance as at the beginning of the calendar year 2025 and the better part of FY25, foreign investors were net sellers of Indian equity. The increase in foreign investor inflows came on the top of increasing returns in the domestic markets. Nifty increased 6% in March 2025, the highest in monthly return since July 2024. A combination of correction from the post-COVID rally, and the uncertainty around U.S. President Donald Trump's trade policies contributed to the net selling as foreign funds invested in U.S. bonds and exited the Asian stock markets due to tariff uncertainty. Liberation Day tariffs further increased the uncertainty as major economies were expected to be hit. The 90-day pause, however, cooled the uncertainty and with a trade deal between the U.S. and India imminent, market confidence returned to India. At the domestic level, a less-volatile rupee, softening inflation and improving GDP growth has led to the return of foreign money into the Indian equity market. This moderation in global risks to India's growth and improving state of domestic economic indicators may have instilled confidence in foreign investors, according to analysts
Business Standard
21-05-2025
- Business
- Business Standard
Shoonya Upgrades to Trading-cum-Clearing Member (TM-CM) on MCX
PRNewswire Mohali (Punjab) [India], May 21: Shoonya by Finvasia has officially announced its upgrade from a Trading Member (TM) to a Trading-cum-Clearing Member (TM-CM) on the Multi Commodity Exchange (MCX). The transition took place after market hours on Friday, May 16, 2025, and has been fully operational from Monday, May 19, 2025. This milestone marks a significant enhancement in Shoonya's operational capabilities. By becoming a TM-CM, Shoonya will now clear all MCX trades internally without the involvement of any external clearing member. The clearing cost has now been reduced from Rs. 50 per crore to Rs. 0. The move reflects the company's long-term strategy to build stronger back-end efficiencies while extending the benefits directly to its users. Speaking on the development, Sarvjeet Singh Virk, Co-founder and Managing Director of Finvasia, said, "At Shoonya, our mission has always been to make investing affordable and efficient for every Indian. Upgrading to a TM-CM on MCX is a key milestone in that journey, one that eliminates clearing costs and enables faster, and secure settlements. It is yet another example of how we're investing in technology and tech-related solutions to deliver a simplified, intuitive and frictionless user experience." There will be no impact on users during this transition. All open positions, holdings, deposits, and trading access will remain unchanged. This upgrade underscores Shoonya's vision of delivering a modern investment experience where efficiency, transparency, and long-term value come standard. About Shoonya by Finvasia Shoonya by Finvasia is a multi-asset trading platform, boasting low commission across 16 investing touch-points like clearing, technology, monthly maintenance etc. Placing customer experience at the core, the distinctive platform offers data-powered signal-based analysis to help investors and traders identify the best investment opportunities and make informed decisions. This focus has driven customer preference as the platform's active user base more than doubled in FY2023, which now stands at over 4 lakhs. The platform is one of the few non-bank clearing members in India, clearing and settling trades executed by Trading Members (TMs) and Foreign Portfolio Investors (FPIs) in Equity, Futures Options and Currency Derivatives segments on NSE, BSE, MCX and NCDEX. Shoonya was founded by Sarvjeet Virk (MD) and Tajinder Virk (CEO), Ex-Wall Street Professionals, with deep financial expertise. They envisioned to empower Indian traders and investors by enabling them to make smart financial decisions and achieve investment goals through an innovative and user-friendly trading platform. The company received FDI funding from some of the industry's notable Venture Capitalists against a valuation of INR 1.5 Billion in 2016, which enabled it to achieve its guiding mission to cut the cost that makes trading expensive and offer technology-driven financial services to its clients. Website:
