[ad_1]
 "SEBI")
Sebi believes that these measures will strengthen the country’s position as a preferred destination for FPIs. | Photo: Shutterstock
In order to improve operational efficiencies and address concerns raised by foreign portfolio investors (FPIs), Sebi on Wednesday said it has introduced measures to accelerate the availability of sale products to these investors, thereby putting them on a on an equal footing with national institutional investors.
It is generally estimated that the efficiency gains from this measure would be around Rs 2,000 crore per year.
Click here to join us on WhatsApp
REITs have previously reported delays in their access to sale proceeds beyond the standard “T+1” (trading plus one) settlement date. These delays were primarily due to the process previously adopted to obtain tax clearance on net sale proceeds to ensure compliance with FEMA regulations.
To resolve this issue, Sebi has initiated consultations with key stakeholders including FPIs, clearing houses, depositories and tax advisors. This collaborative effort led to significant process improvements, making sale proceeds available to REITs on settlement day and putting them on par with domestic institutional participants.
Under the new system, effective from September 9, tax certificates for FPI sale transactions executed on day T are issued by tax advisors before 9 am IST on day ‘T+1’. This allows FPIs to access the sale proceeds, either for repatriation or reinvestment, on the same day “T+1”, the regulator said in a statement.
The Securities and Exchange Board of India (Sebi) believes that these measures will strengthen the country’s position as a preferred and efficient investment destination for FPIs, reflecting the regulator’s commitment to creating an investor-friendly ecosystem.
First publication: October 16, 2024 | 5:37 p.m. STI