The Securities and Exchange Board of India is considering exempting sovereign wealth funds (SWFs) from the 10% foreign institutional investment (FII) ceiling, CNBC-TV18's Tanvi Shukla reports.
This move would comply with the comprehensive economic co-operation agreement (CECA), has been signed between the government of India and other governments. Thus, this does not apply to all kinds of SWFs but only to funds where the government of India has a tie-up with. There are several investment vehicles that are used by these wealth funds to invest in the Indian market. The SEBI will club all vehicles as one FII group and is considering raising the ceiling for SWFs to 20% here from the current 10%. However, the market regulator has said that the exemption will be given on a case-to-case basis where the CECA norms apply and will be subject to no change in control.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
