As foreign portfolio investor (FPI) participation remains a key concern for the Indian stock market, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey recently said the market regulator would examine whether market participants in India face higher compliance costs than their counterparts in other emerging and developed economies.
SEBI is also working with the Reserve Bank of India (RBI) to make the process of bringing foreign investors into Indian markets faster and smoother, said Pandey.
While speaking at an event by NDTV Profit, Tuhin Kant Pandey addressed a key concern for India's stock market, which is the trend of foreign investors considering to weigh their options across countries even as Indian markets grow in size and sophistication. "Because in terms of markets, we are fairly world class. But in order of compliance, if we are on the higher side, we should certainly lower that burden and make it better," NDTV quoted Pandey.
SEBI will review compliance requirements for FPIs and issue a consultation paper to seek views on aligning Indian norms with global standards, while retaining safeguards for investor protection and market integrity. While addressing a separate event, Pandey mentioned that SEBI is examining the existing norms to facilitate greater foreign investor participation in domestic markets.
"We recognise that some compliance requirements in India remain more onerous than those in other major jurisdictions. We are reviewing these requirements and will issue a consultation paper to seek views on aligning them with global standards, while preserving the safeguards needed for investor protection and market integrity," Pandey said while addressing an annual summit on Wednesday.