MUMBAI, Dec 24 (Reuters) - Foreign portfolio investors in
India would be subject to the same tax treatment as foreign
institutional investors, the country's market regulator
clarified on Tuesday.
India had approved new rules in October aimed at
streamlining the registration process for foreign investors
according to which overseas investors will be classified into a
newly created foreign portfolio investors category as long as
their equity stake in a company does not exceed 10 percent.
The Securities and Exchange Board of India (SEBI) said it
had received approvals from the Department of Economic Affairs
and the tax department to extend the same tax benefits to the
new class of investors.
SEBI also approved rules announced earlier this year that
will allow companies to issue debt through a shelf filing, along
with regulations empowering it to monitor investors' call
records and conduct searches at companies suspected of
The approvals came after SEBI's last board meeting for the
The regulator also revised rules that mandated companies to
get their initial public offerings graded by a credit rating
agency before going to the market.
Investment bankers had opposed the rules that came in three
years back, partially blaming the stringent requirement for the
dormant IPO market.
SEBI said IPO grading would be voluntary.
(Reporting by Himank Sharma; Editing by Subhranshu Sahu)