Terming suggestions of a panel on simplifying foreign investment norms as positive, Finance Minister P Chidambaram said on Thursday market regulator Securities and Exchange Board of India will take decision on the report at its next Board meet on June 25.
"We are in favour of K M Chandrasekhar Committee report. Recommendations are positive and deserved to be accepted," he said while addressing a press conference in New Delhi.
He said the Securities and Exchange Board of India will consider the report in next Board meeting on June 25 and after discussions final view would be taken.
With an aim to attract more capital inflows, the Committee appointed by Sebi suggested a slew of measures, including simplified registration process for foreign investors and classifying them into a single category.
The panel also suggested that Know Your Client rules should be based on the risk profile of investors.
The recommendations from the panel come at a time when the government is exploring ways to lure more foreign capital into the country and strengthen the falling rupee.
Chidambaram also expressed confidence that Sebi in concurrence with RBI will encourage sovereign wealth funds to invest in India.
India on Wednesday raised the limit for foreign investment in government dated securities by $5 billion to $30 billion.
The enhanced limit of $5 billion will be available only for investments in government dated securities by long-term investors registered with Sebi -- Sovereign Wealth Funds, Multilateral Agencies, Pension/Insurance/Endowment funds, foreign central banks.
The Finance Minister further said Indian bond markets give better returns than most of the other markets.
The Chandrasekhar Committee also suggested single overseas investments of more than 10 per cent in a company should be considered as FDI, while those less than 10 per cent should be classified as foreign portfolio investment.
The committee on 'rationalisation of investment routes and monitoring of foreign portfolio investments' said that KYC norms for investors should be based on their risk profiles.
Image: Finance Minister P Chidambaram
