INDIA: SEBI relaxes registration and disclosure norms for low-risk India foreign investors

Friday September 13 2013

The Securities and Exchange Board of India (SEBI) has released a Circular relaxing registration and disclosure norms for low-risk India foreign investors in a bid to make the Indian capital markets easier forums in which to invest.

SEBI has classified foreign investors eligible to make portfolio investments in the country under three broad segments as per their risk profile, while putting the government and other sovereign entities in the lowest-risk Category I. Entities such as mutual funds, insurers, investment trusts, banks, university funds and pension funds have been put in the medium-risk Category II, while others such as corporate bodies, individuals and family offices have been classified in the Category III.

Accordingly, the Know Your Client (KYC) requirements would be eased for those with low-risk profiles. The new norms are expected to make it much easier for the foreign investors to enter the country and make investment decisions.

Click on the above link for the SEBI Circular.