Sebi chairman Tuhin Kanta Pandey said the regulator will release a consultation paper on foreign investor compliance within weeks. The document aims to align Indian norms with global standards as many FIIs withdrew $31.4 billion this year. Pandey said, "It will be released very soon, within weeks," to improve efficiency.
Synopsis
Sebi is likely to release a consultation paper on foreign investor compliance requirements within weeks, chairman Tuhin Kanta Pandey said. The proposed document will explore aligning Indian norms with global standards amid heavy FII outflows. The regulator is also planning a capacity-building network to strengthen independent directors’ effectiveness.
Kolkata: The Securities and Exchange Board of India (Sebi) is likely to issue the proposed consultation paper on compliance requirements for foreign institutional investors (FII) within weeks, chairman Tuhin Kanta Pandey said Saturday in Kolkata.
The market regulator will also take a consultative approach on capacity building for independent directors, aiming to strike a balance between their independence and regulatory oversight.
This consultative document on FIIs, which would seek views on aligning Indian norms with global standards, will be keenly followed amid massive outflow of foreign capital that led to a persistent fall in stock indices.
"It will be released very soon, within weeks," Pandey said.
FIIs withdrew $31.4 billion on a net basis from local equities this year so far as they seek to maximise returns in safe-haven assets following rise in US treasury yields and dollar's comparative strength against other global currencies in the backdrop of unabated geopolitical uncertainties.
Live Events
Pandey had earlier in the week said that the market regulator was reviewing requirements that remain more onerous in India than in other major jurisdictions.
India is also among a few countries that still levies a security transactions tax (STT), while the long-term capital gains (LTCG) tax was reintroduced in 2018 and the rate to 12.5% last year.
Earlier in the day, speaking at a Bharat Chamber of Commerce platform, Pandey said that the regulator is reviewing regulatory processes to reduce unnecessary compliance burdens and improve operational efficiency. "Our endeavour is to make regulation more proportionate and risk-based, while maintaining high standards of governance and market integrity," he said.
Regarding effectiveness of independent directors in remitting corporate governance responsibilities, the regulator said that a capacity-building network is being planned involving institutions, professional bodies, academia and chambers of commerce to grow the skills and effectiveness of independent directors.
On the question of the proposed revival of Calcutta Stock Exchange, Pandey said that the regional bourse where trading has been suspended since April 2013 needs to comply with the regulations, settle the outstanding dues and build modern trading infrastructure including online screen-based trading system.
"Existing stock exchanges will be able to handle larger volumes", he said, on being asked whether the country needs more exchanges to deepen the market.
He, however, maintained that there is no regulation that prohibits building new bourses.
(You can now subscribe to our ETMarkets WhatsApp channel)
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless
(You can now subscribe to our ETMarkets WhatsApp channel)
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless
You can buy a walkie-talkie online. But can you legally use it?
KYB and KYC: Quick commerce, the Damani premium and what DMart must deliver – 3rd and concluding part
KYC and KYB: Inside Damani’s DMart, the retail chain for the middle class. And stock for the long term? – Part 2 of 3
Will it be a regulatory nightmare if an exchange lists on its own platform?
KYC and KYB: Inside Damani’s Avenue Supermarts that refuses to charge more – Part 1 of 3
Can new data protection law guard against SBI-like data breaches?
Find this comment offensive?
Choose your reason below and click on the Report button. This will alert our moderators to take action
Name
Reason for reporting:
Foul languageSlanderousInciting hatred against a certain communityOthers
Your Reason has been Reported to the admin.
Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories
& personalised newsletters
Login Now
Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &
in-depth stock reports
Subscribe Now
ET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
Uh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Unlock ETPrime's Exclusive Stories Today!
Subscribe to gain powerful insights on business, stock market and industry trends.
Big Price Drop! Flat 40% Off
Student Only Offer
Already a Member? Sign In now
Already a Member? Sign In now
Already a Member? Sign In now
Offer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail Offer
Offer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail Offer
Offer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail Offer
Offer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail Offer
Offer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail Offer
Special Offer
Get flat 40% off on ETPrime
Avail Offer
Avail Offer
Claim Now
Already a Member? Sign In now
Need Assistance?
Connect with an ETPrime expert for personalized support and guidance
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Get daily trade ideas from SEBI-registered research analysts.
Grow your wealth with stock ideas & sectoral trends.
All-in-one stock research with Stock Score, peer comparison & key signals.
Get to know where the market bulls are investing to identify the right stocks.
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
4Times Of India Subscription (1 Year)
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Docubay Subscription
Stream new documentaries from all across the world every day.