To ease rules for foreign investors and safeguard their interest, the Securities and Exchange Board of India announced reforms which include approval for trading of both stocks and commodities on a single exchange, and capping of cross-holdings in rating agencies as well as in mutual funds.
For foreign portfolio investors, the Board relaxed entry norms by expanding the eligible jurisdictions for registration by including all countries that have diplomatic ties with India; the regulator will also rationalize criteria and simplify the broad-based requirements for such investors.
The proposed norms will impact global rating agencies such as S&P, Moody’s, and Fitch which have significant holdings in Indian rating agencies apart from their direct presence.
