SEBI dismisses concerns on FPI outflow

In April, SEBI had asked Category 2 and 3 FPIs to provide a list of their beneficial owner in a prescribed format within six months.

Published: 05th September 2018 03:38 AM  |   Last Updated: 05th September 2018 03:38 AM   |  A+A-

SEBI  (File photo | Reuters)

Image used for representational purpose. (File photo | Reuters)

By Express News Service

MUMBAI: In an out-of-turn move, markets regulator SEBI on Tuesday strongly dismissed concerns raised by a section of asset managers over massive foreign fund outflow as ‘preposterous and highly irresponsible.’

On Monday, the Asset Manager’s Roundtable of India (AMRI) said incoming ownership norms for foreign funds could lead to outflows as massive as $75 billion. According to AMRI, funds managed by Overseas Citizens of India, Persons of Indian Origin and Non-Resident Indians will be disqualified from investing in India and they will have to be withdrawn and liquidated within a short time frame. AMRI also warned that it would have severe impact on stocks and rupee.

In an early morning statement, SEBI on Tuesday said, “It is preposterous and highly irresponsible to claim that 75 billion dollars of FPI investment will move out of the country because of SEBI’s circular issued in April 2018.”

In April, SEBI had asked Category 2 and 3 FPIs to provide a list of their beneficial owner in a prescribed format within six months. The deadline was later extended by two months till December and assured that issues raised will be looked into by an expert panel.

NRIs can invest in Indian equities directly or via the FPI route. They need to register with SEBI, which categorises them into three, based on the risk profile.  Category 1 includes government entities, 2 includes regulated broad-based funds – the traditional route that NRIs use to invest funds – and 3 comprises endowments, charitable societies, foundations and family offices.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.