Why in News:

• As part of its attempts to streamline the regulations to encourage foreign inflows in the Indian market, the Securities and Exchange Board of India (SEBI) has proposed fast track on-boarding procedure for such investors, apart from a simplified registration process.

Details:

• As a key source of capital to the Indian economy, it is important to ensure a harmonised and hassle-free investment experience for international investors and improve transparency.
• The group’s primary objectives were consolidation, simplification, rationalisation and liberalisation
• The group has also recommended pension funds to be considered for Category I FPIs registration, removal of opaque structure and
  the review of broad-based conditions for appropriately regulated entities.
• The committee has further proposed a liberalised investment cap under a review of prohibited sectors for foreign investment for FPIs, restriction on Sovereign Wealth Funds (SWFs) for investment in corporate debt securities, and permitting FPIs for off-market transactions.
• The committee has also proposed alignment of regulations for FPIs and Alternate Investment Funds (AIFs) and the harmonisation between investment restrictions in FPI regulations and Foreign Exchange Management Act (FEMA).

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: Mumbai.
• Purpose: Protect the interests of investors in securities, promote the development of securities market and to regulate the securities market.