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Securities and Exchange Board of India (SEBI) on Wednesday said it has introduced measures to speed up the availability of sale proceeds for Foreign Portfolio Investors (FPIs), bringing them on par with domestic institutional investors (DII). The step will make sale proceeds available to FPIs on the settlement day, resulting in efficiency gains of Rs 2,000 crore per annum, SEBI said. “Under the new system, in place since September 9, 2024, tax certificates for FPI sale trades executed on ‘T’ day are issued by tax consultants by 9:00 AM IST on ‘T+1’ day,” the capital markets regulator said on Wednesday. This allows FPIs to access sale proceeds, either for repatriation or for reinvestment, on the same ‘T+1’ day. It is broadly estimated that efficiency gains on account of these revised processes would be around Rs 2,000 crore per annum, it said. FPIs have previously reported delays in their access to sale proceeds beyond the standard T+1 (trade plus one day) settlement date. These delays were primarily due to the erstwhile process adopted for obtaining tax clearance on their net sale proceeds, to ensure compliance with FEMA (Foreign Exchange Management Act) Regulations. The regulator said the new measures will reinforce India’s position as a preferred and efficient investment destination for FPIs, reflecting the regulator’s commitment to creating an investor-friendly ecosystem. None
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