Investors from the U.S. have emphasised the need for early finalisation of direct listing proposals, development of the corporate bond market and reforms in IPO regulations, said SEBI.
In an interaction with top Securities and Exchange Board of India (SEBI) officials, they have also shown interest in taking part in innovative ideas under the regulatory sandbox framework, the regulator said.
Ajay Tyagi, Chairman, SEBI, along with other officials, held an e-interaction with stakeholders from the U.S. on Tuesday which was organised by the U.S. India Strategic Partnership Forum (USISPF).
“We briefed them about key developments in the Indian economy as well as recent trends in the securities market, especially in this COVID era,” he said.
“The achievements of the Indian primary markets, secondary markets and specific products such REITs and InvITs were brought out during the interactions. The attractiveness of the Indian markets, despite the COVID1-9 impact and the recent surge in foreign investment into India through the FPI route was also emphasised,” he said.
“The increasing number of registrations of FPIs every year and increasing inflows of FPI investment in the Indian equity market signify the sustained interest of the foreign investors in the Indian capital markets,” he added.
As the largest number of FPIs and about a third of the total assets under FPIs’ custody are from the U.S., the importance of U.S. investments into India was emphasised, especially taking into account the growing partnership between the two countries, Mr. Tyagi added.
The participants appreciated the various initiatives taken by SEBI, especially with respect to direct listing proposal and creation of new products such as REITs and InvITs which have the potential to attract more foreign investment while benefiting the domestic economy given its multiplier effect.
“The initiatives taken by SEBI towards ease of participation by FPIs such as simplified registration process, common application form, onboarding during COVID1-9 through digital scanning of KYC documents were also appreciated,” SEBI said.
The SEBI team also clarified various queries raised during the meetings on multiple issues.
