SEBI simplifies FPI rules to attract foreign investors

• SEBI plans to simplify foreign portfolio investor (FPI) registration to attract global funds back to the Indian market.
• Proposed changes include a shorter application form for specific investors (e.g., funds run by the same manager, sub-funds, or existing FPI license holders).
• A new Master Circular will consolidate all FPI rules, processes, and circulars issued after May 2024 into a single document.
• Clearer guidelines for KYC and beneficial ownership are proposed, with separate provisions for NRIs, OCIs, Indian residents, and various FPI types.
• SEBI has invited public comments on the proposed framework until December 26th.

Why It Matters: SEBI's simplified FPI rules could attract more foreign investment to India.