The Government of India, through the Securities and Exchange Board of India (‘SEBI’), is taking measures to liberalise its current foreign portfolio investors regime as an initiative to boost foreign investments into India.
SEBI through the 2014 Foreign Portfolio Investors (‘FPI’) Regulations (‘FPI Regulations’) regulates and issues FPI licences to investing entities in India. The FPI Regulations came into effect on 01 June 2014 and several guidelines, FAQs and circulars have been issued by the SEBI to provide clarifications to foreign investors.
In March 2018, the SEBI constituted a Working Group to review the FPI Regulations with a primary objective of consolidating the circulars, FAQs and guidelines. The intent was to simplify the language and complexities, hereby rationalising and liberalising the FPI regime.
In May 2019, the Working Group submitted its recommendations to the SEBI and a new set of FPI Regulations was later approved in August 2019. Some of the proposed measures are highlighted below:
While the recommendations have only been approved in the SEBI Board Meeting on 21 August 2019, we still await for the revised FPI Regulations which are expected to be out in the months to follow:
Anthony Leung Shing
Country Senior Partner, Tax Leader, PwC Mauritius
Tel: +230 404 5071
Tax Partner, PwC Mauritius
Tel: +230 404 5079