Sebi board to consider FPI settlement norms ease, intermediary reforms on Monday
GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims·
Why in news
The Securities and Exchange Board of India (Sebi) is considering proposals to ease settlement norms for Foreign Portfolio Investors (FPIs) and overhaul 'fit and proper' criteria for market intermediaries.
Background
Sebi is holding its fifth board meeting under the chairmanship of Tuhin Kanta Pandey. Key proposals include allowing FPIs to net funds for same-day cash market trades and revising the 'fit and proper person' criteria for intermediaries.
Facts for Prelims
- BodySebi: The primary regulator for the securities and capital markets in India.
- FactFPIs: Proposed to be allowed to net funds for same-day cash market trades to reduce funding costs.
- FactFit and Proper Criteria: Proposed overhaul includes abolishing the reference to winding-up proceedings as a disqualification for intermediaries.
For Mains
Q. Discuss how easing settlement norms for Foreign Portfolio Investors (FPIs) can enhance market liquidity and operational efficiency in the Indian capital markets.
Dimensions to cover in your answer
- Liquidity enhancement: Reducing funding costs for FPIs to improve same-day cash market settlement efficiency
- Regulatory oversight: Balancing the 'fit and proper' criteria to ensure intermediary integrity while removing obsolete disqualifications
Keywords: Capital Market Liquidity · Regulatory Overhaul · Foreign Portfolio Investment · Operational Efficiency · Market Intermediaries
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