NRIs likely to get bigger play in local equities through GIFT City FPIs

Source: Business Standard

The market regulator Securities and Exchange Board of India (Sebi) may permit non-resident Indians (NRIs) and Overseas Citizens of India (OCIs) to have more exposure to Indian equities if they route their investments through foreign portfolio investors (FPIs) registered at the GIFT City International Financial Services Centre (IFSC).

The proposal will be discussed during Sebi’s board meeting on Saturday along with other important agenda items such as relaxing the voluntary delisting process and introducing a regulatory framework for real estate fractional ownership platforms, according to people familiar with the matter.

Currently, the combined holdings of NRIs and OCIs in a global fund cannot exceed 50 percent, while the limit for a single NRI or OCI is 25 percent.

Sources said the market regulator may allow the total contribution of NRI/OCIs to go above 50 percent of the FPI corpus as long as the global fund is based in a particular country.