If all goes well and the market regulator agrees, foreign portfolio investors (FPIs) will find it easier to invest in Indian markets. They will be able to put money in debt and stocks without routing it through intermediaries.
According to analysts, Sebi is likely to further relax account opening steps and allow multiple demat accounts. The regulator is also likely to consider direct FPI investment in the debt segment. This facility is likely to be extended to the equity market subsequently. These steps, which may not come immediately, are likely to boost foreign inflows into the capital markets, they said. The Sebi board which is meeting on Friday is likely to consider more sops for FPIs for direct and easier investments. However, it may not be smooth sailing as any such relaxation will be opposed by local brokerages. “Sebi should come out with a consultative paper before announcing such measures to take into account the opinion of other market players,” said a market source.