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Informist, Tuesday, Sep 3, 2024

MUMBAI – The Securities and Exchange Board of India is exploring whether to have a light-touch registration process for foreign portfolio investors who commit to invest only in Indian government securities, Whole Time Member Ananth Narayan said today. "We are trying to see if we can make the registration process for them a lot more easier," Narayan said at a Confederation of Indian Industry summit here.

FPIs who invest in equities have to comply with rigorous know-your-customer norms before getting registered with SEBI. The same rigour may not be required for FPIs investing only in government bonds, Narayan said.

India's government bonds under the fully accessible route are scheduled to be included on emerging market local currency bond indices operated by JP Morgan and Bloomberg starting in the current financial year ending March. The inclusion is expected to garner inflows of around $25 bln into India's gilts. Even two months after India's inclusion in JP Morgan's emerging markets bond indices on Jun 28, some foreign investors continue to face problems in meeting India's stringent know-your-customer norms to trade onshore.  End

Reported by Rajesh Gajra and Darshan Nakhwa

Edited by Akul Nishant Akhoury

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