Sebi has constituted an expert group of foreign portfolio investors (FPIs) to boost overseas flows into the country. The FPI Advisory Committee (FAC) will be chaired by KV Subramanian, Former Chief Economic Adviser and consists of 14 other members representing foreign banks, stock exchanges depositories and the RBI.
The FAC has been tasked with advising on issues related to investments and operations of FPIs in the financial markets, including measures to facilitate ease of doing business by FPIs in India. Also, to review investment avenues available for FPIs and to advise on feasibility of new investment avenues. And to suggest measures required to encourage FPI participation in the bond market.
The move comes at a time when the market regulator and FPIs are at odds over shortening the trading settlement cycle to T+1 from current T+2. FPIs have pulled out more than $30 billion from domestic stocks since October amid unwinding of post-pandemic stimulus measures by the US Federal Reserve.
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