Foreign investment norms eased

Foreign investment norms eased

The Reserve Bank of India, on Tuesday, simplified foreign portfolio investment norms by put in place an easier registration process and operating framework with an aim to attract inflows.

“The portfolio investor registered in accordance with Sebi guidelines shall be called Registered Foreign Portfolio Investor (RFPI),” RBI said in a notification.

The existing portfolio investor class, namely, Foreign Institutional Investor (FII) and Qualified Foreign Investor (QFI) registered with Sebi shall be subsumed under RFPI, it said.

The guidelines for Portfolio Investment Scheme for Foreign Institutional Investor (FII) and Qualified Foreign Investor (QFI) have since been reviewed and it has been decided to put in place a framework for investments under a new scheme called Foreign Portfolio Investment scheme, it said.

RFPI may purchase and sell shares and convertible debentures of Indian company through registered broker on recognised stock exchanges in India as well as purchases shares and convertible debentures which are offered to public in terms of relevant Sebi guidelines, it said.

Such investors “may also acquire shares or convertible debentures in any bid for, or acquisition of, securities in response to an offer for disinvestment of shares.

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