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Corporate bond market, IPO regulations top SEBI's interaction with US investors

The increase in the number of registrations of FPIs and growing inflows of investment in the Indian market signifies foreign investors' interests in India, SEBI has said.

October 28, 2020 / 12:28 PM IST

Early finalisation of the direct listing scheme, development of the corporate bond market, digitisation of processes and more reforms in IPO regulations were the key points of the interaction between the Securities and Exchange Board of India (SEBI) chairman and investors as well as other stakeholders from the US.

Chairman Ajay Tyagi along with other SEBI officials on October 27 had an e-interaction with various stakeholders, including industry and investor associations from the United States. The interaction was organised by the US India Strategic Partnership Forum (USISPF), SEBI said in a media release.

"We interacted with various stakeholders including the investors in the Indian capital markets from the USA. We briefed them about the key developments of the Indian economy as well as the recent trends in the securities market, especially in this COVID era," said Tyagi.

Considering that the largest number of foreign portfolio investments and about a third of the total assets in the custody of FPIs are from the US, the importance of American investments was emphasised especially taking into account the growing partnership between the two countries, the statement said.

"The achievements of Indian primary markets, secondary markets and specific products such as REITs and InvITs were brought out in the interactions. The attractiveness of the Indian markets despite the COVID impact and the recent surge in foreign investment into India through the FPI route was also emphasised," Tyagi said.

The note from SEBI highlighted that the increasing number of registrations of FPIs and increasing inflows in the equity market signified the sustained interest of the foreign investors in India's markets.

Participants appreciated various initiatives taken by SEBI, especially with respect to direct listing proposals and the creation of new products like real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) that have the potential to attract more foreign investment while benefitting the domestic economy given its multiplier effect.

The initiatives taken by SEBI towards the easing of participation by FPIs such as simplified registration process, common application form, onboarding during COVID through digital scanning of KYC documents were also appreciated, the note said.

Moneycontrol News
first published: Oct 28, 2020 12:28 pm