Sebi to discuss introduction of common application form for FPIs

Team Udayavani, Sep 16, 2018, 11:41 AM IST

New Delhi: Markets regulator Sebi is likely to consider a proposal to introduce a common application form for foreign investors to enter into the domestic capital market, a move expected to improve ease of doing business, senior officials said.

Besides, Sebi is expected to deliberate on a proposal on doing away with the requirement of one per cent security deposits for public issuance of debt securities.

Further, it is likely to discuss on the procedure of transmission of securities in physical mode and the regulator may take up the issue of consistency in respect of payment of fees for seeking certain exemptions from the compliance with Sebi norms.

The board of Securities and Exchange Board of India (Sebi) may discuss these issues in its meeting scheduled this week, they added.

Currently, FPIs have to file a separate form to register themselves with the markets regulator. Besides, they have to approach bank for opening bank account, income tax department for PAN (Permanent Account Number) and market intermediaries for Demat account.

The move is expected to greatly enhance operational flexibility and ease of access to Indian capital markets. Last month, the government had introduced a single application form for such investors.

Finance Minister Arun Jaitley in his 2017-18 Budget Speech had said a common application form for FPIs would be devised with a view to enhancing operational flexibility and ease of access to Indian capital markets.

With regard to one per cent security deposits for public issuance of debt securities, it has been proposed that this requirement should be done away in order to ease the cost and compliance burden on the issuer of securities.

Under the proposal for transmission of securities in physical mode, wherein the value of such securities is up to Rs 2 lakh per issuer company, it has been suggested that no-objection certificate from all legal heirs should not be required if they are in possession of succession certificate or probate of will or will.

Besides, it has been proposed to file application forms with Sebi giving details and the grounds on which relaxation has been sought for complying with certain provisions under Listing regulations along with a non-refundable fee of Rs 1 lakh.