India’s market watchdog and central bank are close to finalising measures that will streamline the onboarding of foreign investors, reducing approval times from six months to 30-60 days, aiming to boost inflows and match international benchmarks.
India’s market regulator is actively working to simplify KYC processes for foreign investors, seeking to reverse $10 billion in net outflows this year. This initiative is in response to subdued corporate earnings and increasing trade tensions with the U.S., which have added to the uncertainty in India’s financial markets.
Over the past five months, senior Indian regulators have met with more than 200 global asset managers across Europe, Asia, and the U.S. to gather feedback on improving market access.
Additionally, a delegation of investors from six countries recently held discussions with officials from the RBI, SEBI, exchanges, and the Ministry of Finance to promote further foreign investment in India.
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India’s central bank will adopt SEBI’s streamlined standards for foreign pooled funds, simplifying access for low-risk investors, such as insurance and mutual funds.
The RBI aims to harmonise bank account regulations for foreign investors with SEBI’s registration framework, as SEBI develops a digital portal to streamline document filings, emphasising coordinated efforts to attract overseas capital, according to industry insiders.
