Mumbai: There is a good news for NRIs from J&K!
India’s market regulator, the Securities and Exchange Board of India (Sebi), has made it easier for Non-Resident Indians (NRIs) to invest in Indian markets.
Sebi has now allowed Foreign Portfolio Investors (FPIs) established in GIFT City to accept unlimited investments from Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs). This opens doors for greater participation from the Indian diaspora in Indian markets.
What’s changed?
Previously: NRIs and Overseas Citizens of India (OCIs) could only invest up to 50% in a Foreign Portfolio Investor (FPI).
Now: NRIs can own up to 100% of a global fund set up at GIFT City, a special economic zone in Gujarat.
What are the benefits?
More investment options for NRIs:
This opens doors for NRIs to invest a larger portion of their money in Indian stocks through global funds.
Potential for increased investment flows:
This move could attract more investment from the Indian diaspora into the Indian stock market.
Disclosure Requirements:
To ensure transparency, any FPI taking advantage of this rule will need to provide SEBI with details of all its NRI/OCI investors, including their Permanent Account Number (PAN) cards and their investment amount.
To ensure transparency, any FPI taking advantage of this rule will need to provide SEBI with details of all its NRI/OCI investors, including their Permanent Account Number (PAN) cards and their investment amount.
To maintain transparency, stricter disclosure rules apply to funds with significant holdings in a single Indian group or large overall holdings in Indian equities. Funds with over 33% of their equity assets under management (AUM) in one Indian group company will need to provide detailed investor information.
