The Securities and Exchange Board of India (SEBI) has appointed a committee under former cabinet secretary KM Chandrashekhar to frame uniform guidelines for various categories of foreign investors.
"In consultation with the government, we have decided to combine various routes which are present today into one single route. Three to four days ago, we set up a committee under former Cabinet secretary KM Chandrashekhar to look into this," SEBI chairman UK Sinha said on the sidelines of a capital markets summit organised by industry body CII in Mumbai.
The committee would suggest ways to simplify the investment process for all overseas entities like foreign institutional investors (FIIs), qualified financial/institutional investors (QFIs), and NRIs, foreign venture capital investors (FVCIs). The committee would also strengthen surveillance over all the overseas entities investing in India.
Sinha however, did not specify when is the committee expected to submit its report. FIIs have invested more than R 1,00,000 crore in Indian equities and debt in 2012.
In its board meeting held on October 5, SEBI had said that it was looking for ways to streamline foreign investment norms for various categories of investors. "With a view to rationalise/harmonise different routes for foreign portfolio investments, SEBI will prepare draft guidelines based on the guidance of the working group on foreign investments, for consideration of the government so that uniform guidelines are made for various categories of investors such as FIIs, FVCIs, NRIs, QFIs etc," SEBI said.
SEBI also said that norms to prevent flash markets crash like what happened on the NSE in October and protect the interests of investors would be in place within a few days. "I expect the final guidelines to safeguard the interests of investors due to flash crashes in a few days," Sinha said.