With foreign funds liquidating their investments in India and taking flight due to the covid-19-related uncertainties, the Securities and Exchange Board of India (Sebi) has initiated measures to stem the outflow.
On Tuesday night, the regulator allowed countries or jurisdictions to approach it for Category-I registrations. Lack of this registration had saddled many Mauritius-based funds with higher tax liability, and forced many managers to restructure their funds.
In some cases, they even considered shifting of jurisdictions. Sebi amended the foreign portfolio investment (FPI) regulations, which said that funds “coming from any country specified by the central government by an order or by way of an agreement or treaty with other sovereign