Market regulator SEBI has put in place norms for a single regime of foreign portfolio investments (FPIs) by non-resident Indians/Overseas Citizens of India. This is being done to regulate fund flows from NRIs and track the source of money from Indian-origin persons.

The Securities and Exchange Board of India said if single and aggregate NRI/OCI/RI (Resident Indian) holdings in assets under management of FPIs are below 25 per cent and 50 per cent, respectively, then such persons will be allowed to be constituents of the FPI.

For temporary breach of investment limits, the FPI will need to comply within 90 days and in case it remains non-compliant even after 90 days, no fresh purchases will be permitted and such FPIs will have to liquidate their existing position in the Indian securities market within 180 days.

The market regulator also exempted housing finance companies and systemically important non-banking finance companies from disclosure of increase or decrease in shareholding due to encumbrance or release of encumbered shares, SEBI said in a notification.

A similar exemption is already available to scheduled commercial banks and public financial institutions.

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