SEBI moots new KYC norms for FPIs

The Securities and Exchange Board of India (SEBI) has approved a slew of proposals aimed at boosting portfolio investments in stock and commodity derivatives markets.

SEBI has mooted revised framework for settlement of cases and has proposed new know-your-customer (KYC) norms for foreign portfolio investors (FPIs). The SEBI board has cleared the proposals at its meeting held in Mumbai on Monday, September 17.

SEBI chairman Ajay Tyagi informed the media after the meeting that the board has approved new KYC norms for FPIs and the market regulator would issue fresh guidelines on the KYC norms soon. SEBI has also approved a proposal to allow foreign investors to trade in commodity derivatives market, except for sensitive commodities. SEBI would also issue a common application form for the registration of FPIs in the domestic markets.
The board has also given its approval for amending delisting regulations. Further, the board has cleared the proposals for interoperability of clearing houses for commodities and new methodology to calculate the total expenses ratio for fund managers.