Security Exchanges Board of India (SEBI) is in process of allowing participation of Foreign Portfolio Investors (FPIs) in Indian commodity markets. (PTI)
Security Exchanges Board of India(SEBI) is in process of allowing participation of Foreign Portfolio Investors(FPIs) in Indian commodity markets. Speaking at a conference organised by (FICCI) U K Sinha, Chairman SEBI said the regulator will come out with new guidelines in this regard in the next few months. The announcement comes within a month after commodities regulatory body Forward Markets Commission (FMC) was merged with SEBI.
During the event Sinha also said that the market regulator will come out with new guidelines for the credit rating agencies to reduce risks for debt mutual funds adding that the ratings agencies shouldn’t suspend ratings of a company without a proper explanation.“In certain cases, paper being rated as investment grade the credit rating was suddenly suspended; that must be explained to investors and to the public at large. We also look whether there were any conflicts of interest in the ratings process. ” he said. He also indicated that SEBI would also look at whether there were any conflicts of interest in the ratings process.
The regulator’s comments come amid concerns over corporate debt investments by asset managers after a unit of JP Morgan in India suffered significant market losses in late August when auto-parts maker Amtek Auto’s debt was downgraded by rating agencies.
At the event Sinha also announced that SEBI was coming out with new set of regulations for the distribution of Mutual Fund products along with simplification in the Know your customer (KYC) norms. “What we are looking at is how to make KYC norms simple and digital. For instance there is no need for in-person verification in a KYC,” he said. He also indicated that regulator will soon come up with specific guidelines on selling of mutual funds through e-commerce platforms.
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