SEBI simplifies registration criteria for FPIs; amends insider trading prohibition norms

New Delhi, Aug 22 : The Securities and Exchange Board of India (SEBI) has done away with the broad-based eligibility criteria for foreign portfolio investors (FPIs) to simplify and expedite the registration process for these entities.
In its board meeting on August 21, SEBI also cleared the proposal to make Central Banks of other countries eligible for FPI registration. They have been recategorised into two categories, instead of the current three categories.
The SEBI board also approved the norms for migration of companies listed on the Innovators Growth Platform (IGP) to regular trade category on the main board.
Moneycontrol had August 20 reported the regulator might clear simplification of the FPI registration process, and enhancement of startups based on recommendations of the HR Khan Committee.
SEBI has also introduced an amendment to the prohibition of insider trading. It will provide an informant who has credible information on insider trading a reward for up to 10 percent of the disgorged amount, which should be above Rs 1 crore. The maximum an informant can be awarded will be Rs 1 crore.
SEBI will amend regulations concerning credit rating agencies, where the agencies will be mandatorily provided information on debt defaults of companies to enable them to review ratings on these companies.
The regulator has allowed flexibility to mutual funds to invest in non-convertible debentures of unlisted entities up to a maximum of 10 percent of the debt portfolio of the scheme, subject to regulations.