New Delhi: Markets regulator Sebi has proposed facilitating greater participation of resident Indians in the Foreign Portfolio Investors (FPIs) framework.
Under the proposal, Sebi has proposed expanding the role of Indian non-individuals and mutual funds in international investment structures.
“It is proposed to enable retail schemes based in IFSCs in India with resident Indian non-individuals as sponsor/manager to register as FPIs,” Sebi said in its consultation paper.
The regulator has suggested that allowing retail schemes based in International Financial Services Centres (IFSCs) with resident Indian non-individuals as sponsors or managers can be registered as FPIs.
Also, Sebi proposed that the term “sponsor or manager” for IFSC-based FPIs may be replaced with “Fund Management Entity (FME) or its associate”.
Resident Indian non-individuals as FME or its associate in AIFs and retail schemes in IFSCs may contribute up to 10 per cent of the fund’s corpus or assets under management for retail schemes. Overseas mutual funds/unit trusts registering as FPIs may be allowed to include Indian mutual funds as constituents.