INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Markets regulator Sebi is likely to consider a proposal to introduce a common application form for foreign investors to enter
into the domestic capital market, a move expected to improve ease of doing business, senior officials said.
Besides, Sebi is expected to
deliberate on a proposal on doing away with the requirement of one per cent security deposits for public issuance of debt
securities.
Further, it is likely to discuss on the procedure of transmission of securities in physical mode and the regulator may take up
the issue of consistency in respect of payment of fees for seeking certain exemptions from the compliance with Sebi norms.
The board of
Securities and Exchange Board of India (Sebi) may discuss these issues in its meeting scheduled this week, they added.
Currently, FPIs have
to file a separate form to register themselves with the markets regulator
Besides, they have to approach bank for opening bank account, income tax department for PAN (Permanent Account Number) and market
intermediaries for Demat account.
The move is expected to greatly enhance operational flexibility and ease of access to Indian capital
markets.
Last month, the government had introduced a single application form for such investors.
Finance Minister Arun Jaitley in his
2017-18 Budget Speech had said a common application form for FPIs would be devised with a view to enhancing operational flexibility and ease
of access to Indian capital markets.
With regard to one per cent security deposits for public issuance of debt securities, it has been
proposed that this requirement should be done away in order to ease the cost and compliance burden on the issuer of securities.
Under the
proposal for transmission of securities in physical mode, wherein the value of such securities is up to Rs 2 lakh per issuer company, it has
been suggested that no-objection certificate from all legal heirs should not be required if they are in possession of succession certificate
or probate of will or will.
Besides, it has been proposed to file application forms with Sebi giving details and the grounds on which
relaxation has been sought for complying with certain provisions under Listing regulations along with a non-refundable fee of Rs 1 lakh.
