Explained: SWAGAT-FI is a diplomatic passport for fleeing FIIs. How will it work?
[hfe_template id='11223']
[ad_1]
Capital markets, Sebi has approved a new framework that could make life easier for foreign investors in Indian markets. The move comes at a time when foreign institutional investors (FIIs) have been heavy sellers this year, pulling out more than Rs 80,000 crore from equities since July. The new mechanism, called SWAGAT-FI (Single Window Automatic and Generalised Access for Trusted Foreign Investors), is being described as a “diplomatic passport” for certain categories of foreign funds. It is designed to simplify entry, reduce paperwork, and ensure the long-term stability of foreign money in India. Foreign investors manage assets worth over Rs 80 lakh crore in India, and relaxing entry rules will only add to the stability of the domestic markets. According to Sebi, over 70% of these assets are held by entities that would qualify under the framework. How will it work? Under the SWAGAT-FI framework, Sebi will classify some foreign investors ...