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The Government is regularly devising schemes that boost the
Indian market. With the rise in the availability of resources and
coming up of policies promoting ease to do business in India, the
country is increasingly becoming a favoured destination for the
growth and development of business. The fastest growing economy not
only encourages progress of business in the nation but also makes
it an attractive investment option. With a view to secure
investment for the Indian business sector, the Government has been
making efforts with the help of introduction of investor friendly
policies.
Regulated facilitation
Governed under the provisions of the Securities and Exchange
Board of India Act, 1992 (hereinafter referred to as the "SEBI
Act"), the Securities and Exchange Board of India (hereinafter
referred to as the "SEBI") is the market regulator of
India which aims to protect the interests of investors in
securities and to promote the development of, and to regulate the
securities market and for matters connected there with or
incidental thereto. Being a quasilegislative, quasi-judicial, and
quasi-executive body, SEBI drafts legal framework, judicial
pronouncements and effective enforcement procedures for the smooth
transactions of the securities.
SEBI is working towards aiding investment in Indian securities
market taking recourse to the measures some of which are listed
below1:
Lowering the total expense ratio for
equity oriented mutual fund schemes 1.25% for close-ended and
interval scheme and 1% for other schemes, while capping the fund at
2.25% for equity-oriented schemes and 2% for other schemes, thereby
making it less expensive for investors to invest in mutual
funds;
Not settle offences through the
consent mechanism if it views the issue as having market-wide
impact, affects the integrity of the market or results in loss to
investors;
More time granted to the Foreign
Portfolio Investors for complying with KYC norms in India as per
the circular issued by SEBI dated April 10, 2018;
SEBI, Reserve Bank of India and
Central Board of Direct Taxes have introduced a single application
form for registration for Foreign Portfolio Investors in order to
enhance the operational flexibility while ease of access to Indian
capital markets;2
Reduction of the time period for
listing after initial public offering to 3 days which was earlier a
time frame of 6 days, thereby freeing up the locked investor funds
faster so as to benefit both issuers as well as investors;
Offering a more secured platform for
payments, the public issue process may be introduced by way of the
use of Unified Payment Interface with facility of blocking the
funds as a new payment mechanism for retail investor applications
submitted through intermediaries;
Approval of operationalisation of the
budget announcement mandating large corporates to meet one-fourth
of their financing needs through debt instruments;
Eligible foreign entities permitting
foreign entities shall now be permitted to have exposure to Indian
commodity markets;
Rules for reclassification of
promoters have been changed. Promoters seeking reclassification and
persons related to them should not hold more than 10% of the total
voting power or exercise control over the listed entity or have
special rights in the company;
Restrictions shall now be imposed on
fund raising through various share sales or making an open offer
for Fugitive Economic Offenders;
Interoperability of clearing
corporations has now been permitted helping the market participants
to consolidate their clearings and settle payment functions at a
single clearing house thus reducing the effective trading cost for
the investors.
With the objective of maximizing the investments in the Indian
markets, SEBI has formulated investment guidelines that will be
economical and favoured by the investors.
For further information please contact at S.S Rana &
Co. email: info@ssrana.in or
call at (+91- 11 4012 3000). Our website can be accessed at
www.ssrana.in
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The RBI, on September 1, 2018, released a user manual to clearly set out the procedure for filing a single master form, which it introduced on June 7, 2018, to integrate the existing reporting norms for foreign investment in India.
Foreign Portfolio Investors Cry Foul Over Sebi's April 10 Circular On KYC Norms (Video)
