Sebi also works on an FPI (foreign portfolio investors) portal, a one-stop shop that will offer clear information for existing and new foreign investors about ways to gain access to the Indian markets, member Ananth Narayan G said here during the Ficci Capam 2025 event.
On accredited investors (AIS) he said that such investors worldwide are identified as experienced and able to handle risks, so that they get less regulatory protection. To be eligible, investors must demonstrate that they can manage risks and are willing to accept fewer guarantees.
India introduced an AI framework in 2021, but it hardly got any grip because the process was cumbersome and expensive and offered few benefits.
However, this is now changing because Sebi has already simplified the process of obtaining the AI ​​status, making it largely paper-free and works to make it even easier, Narayan said.
He said that Sebi is looking for AIF (Alternative Investment Fund) managers to perform the first checks for AI status. Also, Narayan said that Sebi has now “proposed an AI-all AIF control regime that have a considerably less compliance with an efficient way efficiently in an efficient way in an efficient way in an efficient way to make an efficient efficient”. On the FPI front he said: “Sebi also develops an FPI portal, which provides clarity and transparency to existing and potential foreign investors around our regime regime”. This will also be a one-stop shop for global investors to understand the “how” of access to India markets, he added.
In August 2023, Sebi came up with standards that require foreign funds with more than 50 percent of their property in one business group to provide detailed information about all their owners and beneficiaries. However, some funds such sovereign power funds and regulated investment funds with strict rules for diversification and transparency were exempt, based on a trust-but-verifie approach.
Now the regulator wants to convert these exemptions into a positive qualification. The idea is to create a framework called Swagat-Fi or a single window automatic and general access for trusted foreign investors. This can cover up to 70 percent of foreign portfolio bullies (FPI) assets, said Narayan.
Familiar FPIs would benefit from simpler registration, simpler compliance requirements and broader market access, comparable to large domestic investors.
On the Futures & Options Market, Narayan said that Sebi is considering improving the tenor and adulthood profile of derived products, so that they better support the continuing capital formation.
“This can also be achieved in a calibrated way, giving the system enough time to adjust,” he added.
He said that the regulator is open to objective and simple mechanisms to ensure that derivative participation is informed, suitable and appropriate.
The approach of Sebi to arrive at the optimum regime regime around derivatives is and will remain analytical and consultative.
Average daily traded volumes on Equity camps have grown rapidly by more than 25 percent compiled annual growth rate in the past 5 years, up to more than RS 1 Lakh Crore now.
Earlier in the day, Sebi chairman Tuhin Kanta Pandey also emphasized the improvement of the tenor and adulthood profile of derived products.
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