Sebi to revise KYC circular for FPIs

Providing relief to foreign portfolio investors, the Securities and Exchange Board of India (Sebi) on Tuesday said a revised circular on know-your-customer (KYC) norms will be issued soon.

"The proposed draft circular and proposed amendments in Sebi (FPI) Regulations, 2014 were discussed by the Board and broadly agreed upon. The revised circular, in this regard, will be soon issued separately," it said in a press release.

Earlier this month, the FPI lobby group raised concerns that the Sebi circular on KYC norms restricting non-resident Indians (NRIs) and overseas citizens of India (OCIs) from being beneficial owners of FPIs will result in an outflow of $75 billion from the Indian market. The regulator soon lashed out, saying the claims were "irresponsible" and "preposterous".

Sebi has also approved a regulatory framework to allow foreign entities to trade in commodity derivatives market, except for sensitive commodities. The minimum net worth required for the eligible foreign entities to participate in domestic commodity derivatives markets is $500,000.

The regulator in its Board meeting on Tuesday has approved a host of other proposals as well.