Shorter settlement cycle for FPIs can lead to 'efficiency gains' of Rs 2,000 cr a year
FPIs had raised concerns about delays in their access to sale proceeds beyond the standard T+1 settlement date. These delays were primarily due to the erstwhile process adopted for obtaining tax clearance on their net sale proceeds, to ensure comp...
By ET Bureau | Updated:
Agencies
Mumbai: The Securities and Exchange Board of India (Sebi) said its new shorter settlement cycle for foreign portfolio investors (FPIs) could lead to "efficiency gains" of up to ₹2,000 crore per annum.
FPIs had raised concerns about delays in their access to sale proceeds beyond the standard T+1 settlement date. These delays were primarily due to the erstwhile process adopted for obtaining tax clearance on their net sale proceeds, to ensure compliance with FEMA Regulations.
Sebi has been in talks with FPIs, custodians and tax consultants to resolve the matter. "This collaborative effort led to significant process improvements, making sale proceeds available to FPIs on settlement day, bringing them on par with domestic institutional participants," Sebi said in a press release on Wednesday.
FPIs had raised concerns about delays in their access to sale proceeds beyond the standard T+1 settlement date. These delays were primarily due to the erstwhile process adopted for obtaining tax clearance on their net sale proceeds, to ensure compliance with FEMA Regulations.
Sebi has been in talks with FPIs, custodians and tax consultants to resolve the matter. "This collaborative effort led to significant process improvements, making sale proceeds available to FPIs on settlement day, bringing them on par with domestic institutional participants," Sebi said in a press release on Wednesday.
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