The government will slash the time required for FPIs to register in India, introduce a single-window clearance for them and allow foreign banks to trade on behalf of their clients without registering, a media report said.
With an aim to attract more foreign investment, the government mulls easing rules for foreign portfolio investors (FPIs), a LiveMint report quoted three officials as saying.
The government will slash the time required for FPIs to register in India, introduce a single-window clearance for them and allow foreign banks to trade on behalf of their clients without registering, the report said.
“The FPI registration process, which now on an average takes two months, is set to reduce to just 3-6 days by moving towards a single application and doing away with the requirement of obtaining a Permanent Account Number,” said one of the three government officials was quoted as saying.
The government in its Budget 2015-16 had proposed a single-window clearance for FPIs.
However, the plan could not see the light of the day because of differences between the Securities and Exchange Board of India (Sebi) and the Central Board of Direct Taxes (CBDT).
“CBDT had wanted its set of documents, which took a little bit of time. But now we have come to a common ground and the department of revenue has agreed to a six-page form. Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standards (CRS) will be separately done by brokers or custodians,” said another of the three officials.
The move to further liberalise FPI rules comes at a time when the government is facing criticism for not sharing market data feeds with overseas exchanges, in order to prevent a flight of liquidity from the country.