In News

Markets regulator SEBI withdrew the 20% limit on investments by Foreign Portfolio Investors (FPIs) in corporate bonds of an entity.

About SEBI:

• SEBI is the statutory regulator for the securities market in India.
• It was established in 1988 and given statutory powers through the SEBI Act, 1992.
• HQ:
• Purpose: Protect the interests of investors in securities, promote the development of securities market and to regulate the securities market.
• SEBI is responsive to needs of three groups, which constitute the market i.e.
  • Issuers of securities,
  • Investors and
  • Market intermediaries.
• It has three functions:
  • Quasi-legislative (drafts regulations in its legislative capacity),
  • Quasi-judicial (passes rulings and orders in its judicial capacity) and
  • Quasi-executive (conducts investigation and enforcement action in its executive function).

Foreign portfolio investment (FPI)

• FPI consists of securities and other financial assets passively held by foreign investors.
• It does not provide investor with direct ownership of financial assets.
• It is relatively liquid depending on volatility of the market.