SEBI open to discuss and further rationalise regulations for FPIs for ease of operations

Mumbai (Maharashtra) [India], March 7 : The Securities and Exchange Board of India (SEBI) is open to engaging with foreign portfolio investors (FPIs) to address their difficulties and further rationalise regulations to promote ease of operations, says SEBI Chairman Tuhin Kanta Pandey.
Speaking at the Moneycontrol Global Wealth Summit on Friday, Pandey emphasized SEBI's willingness to engage with foreign portfolio investors (FPIs) and alternative investment fund (AIF) industry participants to address their concerns.
"We at SEBI are conscious about the need to create conducive environment to attract foreign capital. We will be happy to engage with FPI and AIF industry participants to address their difficulties and further rationalize regulations to promote ease of operation," he said.
Foreign portfolio investors (FPIs) are continuously pulling out funds from the Indian stock market. Data from the National Securities Depository Limited (NSDL) suggests that in February FPIs sold equities worth Rs 34,574 crore.
SEBI Chairman also highlighted that domestic institutional investors (DIIs), such as mutual funds and pension funds, have played a crucial role in stabilizing the Indian markets. While foreign investors react to global events and enter and exit the market accordingly, domestic institutional investors have helped maintain market resilience.
However, he reiterated that FPIs continue to be an important part of India's financial ecosystem.
The SEBI Chairman also pointed out that the current fiscal year (April-January) has seen record equity issuance of Rs 4 trillion, which is twice the amount raised in the previous year.
He highlighted that easy access to capital markets is essential for expansion, productivity, and innovation, which in turn fuels economic growth.
New financial instruments, such as Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs), play a key role in attracting long-term capital, both in equity and debt markets.
Quoting the International Monetary Fund (IMF), Pandey stated that other emerging markets are expected to grow at 4.2 per cent in 2025, while India's growth projection stands at 6-6.5 per cent.
He expressed optimism that India can exceed these estimates through initiatives under the Viksit Bharat program.
He also outlined the government's growth strategy as highlighted in the Union Budget. The plan is based on four key pillars--agriculture, MSMEs, investment, and exports--along with major reforms in taxation, power, urban development, the financial sector, and regulation.
Pandey emphasized that SEBI's work is not in isolation but in collaboration with all stakeholders. "Teamwork is not just within SEBI but also with others. Together, we can build a more conducive ecosystem," he said.