The ongoing debate between Sebi and foreign portfolio investors (FPIs) of Indian origin seems to be offering a ray of hope for FPIs. The HR Khan Committee, which was formed to look into their demands, has submitted an interim report to Sebi on KYC requirements.

Sebi said the committee suggested that NRIs, overseas citizens of India and resident Indians should be allowed to hold non-controlling stakes in FPIs and no restriction should be imposed on them to manage non-investing FPIs or Sebi-registered offshore funds.

The recommendations are now open for public comments till September 17.

Nandita Parker, managing partner, Karma Capital, who has been spearheading this move, said most issues that were raised by the community have been taken on board by the HR Khan Panel.

“The way this has worked out is very positive also because it allows us to continue to work with the regulator and the government going forward,” said Parker.

”In the next couple of weeks, once the papers are accepted by Sebi, we should see a new dawn and in fact resumption of business for us,” she added.

"We are happy that the committee took cognisance of important issues like beneficial ownership and others like 25 percent economic interest etc," she said, adding there are certain commercial aspects of the business, which must be taken into account in forming regulations.

First Published:Sept 10, 2018 9:17 AM IST