22 hrs ago
SEBI, RBI Working to Ease Foreign Investors’ Market Access
Foreign investors choose where to invest by comparing what they might earn in different countries after costs.
SEBI chief Tuhin Kanta Pandey said SEBI has made it easier for these investors to get started in India.
SEBI is also working with the Reserve Bank of India on more ways to improve access.
Pandey said investors may look elsewhere if other emerging economies offer higher benchmark yields.
He also said investment in artificial intelligence may be moving too quickly, though it is not yet clear what will happen next.
SEBI is also supporting a new kind of contract tied to corporate bond indexes.
These contracts could help investors manage the risk of changes in bond prices.
The NSE received approval to move ahead with the contracts, but broader participation will take time.
SEBI Chairman Tuhin Kanta Pandey said the regulator is working with the RBI on further steps to ease foreign portfolio investors’ market access.
Pandey said SEBI has simplified FPI onboarding and recently allowed FPIs to participate in non-agricultural commodity derivatives.
He said FPI inflows had reached $800 billion in FY27 so far and noted that investors compare returns after costs across markets.
Pandey said investment decisions can be affected by benchmark yields in other emerging economies and described AI investment activity as potentially excessive.
SEBI has completed groundwork for corporate bond index futures, and the NSE received a no-objection certificate to launch the contracts on October 1.
- Who
- SEBI Chairman Tuhin Kanta Pandey, SEBI, and the Reserve Bank of India.
- What
- SEBI is working to ease foreign portfolio investors’ access and advance corporate bond index futures.
- Where
- The convention was held in New Delhi.
- When
- Pandey spoke at the association’s 12th international convention; the NSE received a no-objection certificate on October 1. The article does not specify the year.
- Why
- SEBI aims to address investor concerns, simplify access, and strengthen participation in India’s markets.
Market Opportunities
Investor and Market Risks
Foreign investment decisions
Market Opportunities
SEBI is simplifying onboarding and working with the RBI to improve FPIs’ access to Indian markets.
Investor and Market Risks
FPIs compare returns after costs across markets, and higher benchmark yields in competing emerging economies may influence their allocations.
AI investment activity
Market Opportunities
The article notes a surge in investments linked to artificial intelligence.
Investor and Market Risks
Pandey said the sector could be seeing excessive activity, and it remains uncertain whether a balancing phase will follow.
Corporate bond index futures
Market Opportunities
The contracts could give investors another way to hedge risk and support development of the corporate bond market.
Investor and Market Risks
Pandey said wider participation would take time.
Key facts
- Speaker
- Tuhin Kanta Pandey, SEBI Chairman
- FPI inflows
- $800 billion in FY27 so far, according to Pandey
- FPI access
- SEBI has simplified onboarding and is working with the RBI on further measures
- Commodity derivatives
- FPIs have recently been permitted to participate in non-agricultural commodity derivatives
- Bond futures
- Contracts linked to corporate bond indices are intended to provide another tool for managing market risk
- NSE certificate
- SEBI issued the NSE a no-objection certificate to launch corporate bond index futures on October 1
- Convention
- The Commodity and Capital Market Participants Association of India’s 12th international convention took place in New Delhi
Sources
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