Sebi Eases FPI Onboarding with Digital Signatures
By Business Desk
Sebi now allows digitally signed powers of attorney for FPIs, streamlining registration and enhancing ease of doing business in India.
The Securities and Exchange Board of India (Sebi) has significantly streamlined the onboarding process for foreign portfolio investors (FPIs) by permitting digitally signed powers of attorney. This crucial change, effective as of Thursday, aligns with India’s Information Technology Act, 2000.
Previously, FPIs faced requirements for notarisation, apostillisation, or consularisation of these essential documents. The new regulation eliminates these steps, directly reducing both the time and effort involved in FPI registration. This initiative notably improves the overall ease of doing business for FPI applicants.
This decision builds upon Sebi’s consistent efforts to simplify the registration framework. Earlier measures included introducing a common application form and allowing Indian digital signatures for other registration documents.
FPI Onboarding Becomes More Efficient
The core of this reform lies in accepting digital signatures, ensuring legal validity under the Information Technology Act. This mechanism directly bypasses the need for physical verification processes. It represents a targeted improvement to the FPI registration lifecycle.
Beyond FPI reforms, other significant market developments recently captured investor attention.
Gaja Alternative Asset Management IPO Performance
Gaja Alternative Asset Management’s initial public offering (IPO) generated substantial interest from investors. On its second day of bidding, the IPO was subscribed 2.43 times. The public offering sought to raise ₹550 crore.
Bids were placed for over 61.6 million shares, significantly exceeding the 25.3 million shares initially offered. Gaja Capital had already secured ₹165 crore from its anchor investors. The IPO is scheduled to conclude on August 21.
The issue price band for the equity shares stands between ₹152 and ₹160 per share. The public issue comprises a fresh issuance of equity shares valued up to ₹450 crore. Additionally, an offer for sale of shares contributes up to ₹100 crore.
NSE Explores Listing Own Shares
Separately, the National Stock Exchange (NSE) is exploring an innovative approach for its own shares. The exchange is considering allowing its shares to trade on its platform after they are listed on a competing exchange. This move could redefine how exchange shares are publicly traded.
An industry source indicated this arrangement would likely fall under the NSE’s established ‘permitted-to-trade’ framework. This framework allows an exchange to facilitate trading in shares already listed on another recognized stock exchange. Crucially, the company does not need to be formally listed on the facilitating exchange itself under this structure.
Such an arrangement might not necessitate a separate approval process from Sebi, leveraging existing regulatory provisions. This flexibility underscores the evolving landscape of market infrastructure operations. It represents a strategic consideration for the exchange.
These diverse developments, from regulatory streamlining to market infrastructure innovations, reflect ongoing efforts to enhance efficiency and access across India’s financial markets. Each initiative, though distinct, contributes to the broader evolution of the investment ecosystem.