Reserve Bank eases foreign portfolio investment norms
- RBI has eased the registration guidelines & operating framework for foreign portfolio investments to attract inflows.
- The investors registered with Securities and Exchange Board of India (SEBI), Foreign Institutional Investor (FII) and Qualified Foreign Investor (QFI) will be subsumed under Registered Foreign Portfolio Investor (RFPI).
- RFPI may trade shares and convertible debentures of Indian companies and the one offered to public in relevant SEBI guidelines.
- Such investors can acquire shares or convertible debentures in any bid for, or acquisition of, securities to offer for disinvestment of shares made by the Central Government or any State government.
- They can invest in government securities and corporate debt subject to limits set by RBI & SEBI.
- Investments made by FII/QFI with regulations prior to registration as RFPI will continue to be valid and taken into account for computing aggregate limit specified.
- Investors are permitted to trade in all exchange-traded derivative contracts, subject to SEBI specified position limits.
- Cash offered by RFPI or foreign sovereign securities with AAA rating or corporate bonds or domestic government securities maybe offered as collateral to recognised stock exchanges for their transactions in cash as well as derivative segment of the market.
- Foreign Institutional Investor (FII)
- Qualified Foreign Investor (QFI)
- Registered Foreign Portfolio Investor (RFPI)
- Stock Exchange
- Sovereign Security
- exchange-traded derivative contracts