MUMBAI: Sebi has taken two separate measures to improve liquidity for overseas portfolio and retail bond traders. FPIs will see improved liquidity by way of faster settlement of funds following the sale of securities, whereas retail bond traders can promote their bonds again to issuers at pre-determined dates.
For FPIs, a brand new system has been launched the place tax consultants will present the required certificates by 9:00 am on the day following the commerce, permitting funds to be launched hours later.Previously, FPIs reported delays in accessing sale proceeds past the usual ‘T+1’ settlement date, which occurred primarily due to the earlier means of acquiring tax clearance on their web sale proceeds to guarantee compliance with FEMA rules.
“Under the new system, in place since Sept 9, 2024, tax certificates for FPI sale trades executed on ‘T’ day are issued by tax consultants by 9:00 am IST on ‘T+1’ day. This allows FPIs to access sale proceeds, either for repatriation or for reinvestment, on the same ‘T+1’ day,” Sebi stated in a press release. The markets regulator estimates that effectivity positive aspects from these revised processes can be round Rs 2,000 crore every year.
Retail traders in bonds which can be listed on the inventory market can look ahead to bonds with assured buy-back from issuers by way of put choices on specified dates, with Sebi introducing a liquidity window facility for them.
