SEBI may ease norms for foreign investors
New Delhi, December 26
Markets regulator SEBI is mulling easing access norms for investment by foreign portfolio investors (FPIs) and bringing a new framework to strengthen the governance structure for mutual funds, senior officials have said.
Also, the SEBI has plans to review the framework for credit rating agencies (CRA) as it seeks to check the menace of ‘rating shopping’ and ‘pick-and-choose’ approach in their actions.
Further, the regulator is looking at providing an additional method for listed entities to achieve the minimum public shareholding requirements.
These issues would be taken up at the SEBI Board meeting scheduled for Thursday, senior officials said.
With regard to FPIs, the markets watchdog may consider simplifying regulatory requirements pertaining to access norms, with a view to easing direct registration for overseas investors.
The regulator will review the norms for CRA on the basis of public comments. It had come out with a consultation paper in this regard in September.
As per the proposal, no CRA should “directly or indirectly hold more than 10% of shareholding and/or voting rights in another CRA and shall not have representation on the Board of the other CRA”. The minimum net worth threshold for the rating agencies has been proposed to be raised to Rs 50 crore from the current level of Rs 5 crore. — PTI
