Reforms in IPO Rules Discussed With Investors from US - SEBI
Ajay Tyagi, the Chairman of the Securities and Exchange Board of India (SEBI), interacted with investors and other stakeholders from the US. In the interaction, the investors from the US emphasised the need for early finalisation of direct listing scheme, development of corporate bond markets and further reforms in initial public offer rules. They have also shown interest in taking part in innovative ideas under the regulatory sandbox framework, the regulator said. Ajay Tyagi along with other officials, held an e-interaction with stakeholders from the US on Tuesday which was organized by the US India Strategic Partnership Forum (USISPF).
“We interacted with various stakeholders including the investors in the Indian capital markets from the USA. We briefed them about the key developments of the Indian economy as well as the recent trends in the securities market, especially in this Covid-19 era,” Ajay said in a statement. He further said the achievements of Indian primary markets, secondary markets and specific products such as Real Estate Investment Trusts (REITs) and Infrastructure investment trusts (InvITs) were highlighted in the interaction. “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.
He father added “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”. Considering that the largest number of FPIs and about one-third of the total assets under custody of FPIs are from the US, SEBI said the importance of US investments into India was emphasised especially taking into account the growing partnership between the two countries.
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.