New Sebi norms to improve FPI, bond investors' liquidity

The Securities and Exchange Board of India (SEBI) has introduced new norms to improve liquidity for Foreign Portfolio Investors (FPIs) and retail bond investors. FPIs will benefit from quicker settlement of funds following the sale of securities, with tax consultants providing required certificates by 9:00 am on the day following the trade. This allows FPIs to access sale proceeds on the same day, enhancing liquidity. Retail bond investors can now sell their bonds back to issuers at pre-determined dates through a new liquidity window facility. These measures aim to streamline processes and improve market efficiency, potentially generating efficiency gains of around ₹2,000 crore per annum. The changes are expected to attract more foreign investment and provide greater flexibility for retail investors, contributing to a more dynamic and responsive financial market.