The government is planning a new regulatory regime for foreign sovereign wealth funds operating in India.
The finance ministry has convened an inter-ministerial meeting next month to discuss the new framework and asked the Securities and Exchange Board of India to submit its views since most of these funds operate as registered foreign institutional investors under the market regulator's jurisdiction.
The move follows concerns raised by the Reserve Bank of India. According to sources, the central bank is concerned that most sovereign wealth funds operate in a non-transparent manner.