Amid concerns among some foreign portfolio investor (FPI) groups, markets regulator, Securities and Exchange Board of India (Sebi) on Wednesday said it will review the proposed new norms for foreign investors and take a holistic view after taking into account views of all stakeholders, including the government.

The regulator has already constituted a working group headed by former RBI Deputy Governor H R Khan to look into the various issues raised by FPIs, including those about Know Your Client (KYC) requirements and disclosures about beneficial ownership.

In a statement, Sebi said that the working group has heard various stakeholders, held consultations and is in the process of giving its recommendations.

The ministry of finance has also been consulted on this. "Based on these inputs, Sebi would review the matter and shortly take a holistic view," it added.

Sources said that the Khan committee met Wednesday with various stakeholders.

The proposed regulatory move, for which Sebi recently extended the deadline till December, aims to check any possible re-routing of funds of Indians and NRIs through overseas locations such as Mauritius, Singapore and Dubai, sources added.

The market regulator Tuesday said it is "preposterous and highly irresponsible" to claim that $75 billion will move out of India because of because of Sebi's circular issued in April 2018.

Some FPIs are believed to have earlier expressed concerns over the proposed changes in rules, for which Sebi has already granted more time.

However, a lobby group named AMRI (Asset Management Roundtable of India) said on Monday that the immediate impact of the new norms, if not amended, would be that $75-billion investment managed by overseas citizens of India (OCIs), persons of Indian origin (PIOs) and non-resident Indians (NRIs) will be disqualified from investing into India, and the funds will have to be withdrawn and liquidated within a short time-frame.

The organisation also warned that it would have severe impact on stocks and rupee.

The market regulator, in April, had asked Category II and III FPIs to provide list of their beneficial owner (BO) in a prescribed format within six months.

It had, however, extended the deadline by two months till December for providing a list of beneficial owners, and assured them that issues raised will be looked into by an expert panel.

The decision came after Sebi received representations from market participants, seeking review and additional time for complying with the guidelines.

First Published:Sept 5, 2018 8:51 PM IST