SEBI constitutes 15-member committee to attract foreign investment; K V Subramanian (Former CEA) appointed Chairman

SEBI constitutes 15-member committee to attract foreign investment; K V Subramanian (Former CEA) appointed Chairman

Securities and Exchange Board of India (SEBI), the market regulator, has constituted a 15-member advisory committee, FPI (Foreign Portfolio Investment)Advisory Committee (FAC) to increase foreign investments and to simplify investment process in the capital markets.

• The committee will also take care of the increasing participation in the domestic bond markets.
• Former Chief Economic Advisor (CEA) KV Subramanian has been appointed as the Chairman of the committee.

The terms of reference of the Committee include:

1. To advise on issues related to investments and operations of FPIs in the Indian financial markets, including measures to facilitate ease of doing business by FPIs in India;
2. To review investment avenues available for FPIs and to advise on the feasibility of new investment avenues;
3. To advise SEBI on measures required to encourage FPI participation in the bond market;
4. To advise SEBI on measures required, if any, in the legal framework for simplification of FPI regulations;
5. To advise SEBI on measures required, if any, in the legal framework to enhance transparency;
6. To advise SEBI on Custodian related matters pertaining to FPIs;
7. To discuss any other issues pertaining to FPIs.

About the committee:

i.Members – The committee consists of 14 members representing foreign banks, Reserve Bank of India (RBI) and stock Exchange depositories.

• Members of the committee include Harun R Khan, Deputy Governor (Retired), RBI, R. Subramanian, Executive Director, RBI, Padmaja  Chunduru,  MD  &  CEO,  National  Securities  Depository  Ltd. (NSDL) and Ashishkumar Chauhan, MD & CEO, National Stock Exchange of India Ltd. 

iii.The committee will suggest ways to amend the existing rules to attract investments, enhance transparency and on issues related to custodians.

Note – SEBI has constituted a Standing Committee for facilitation of Foreign Portfolio Investments (FPI) to provide recommendations and advise SEBI on policy matters relating to FPI. Click here for official Notification

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