MUMBAI, Jan 13: Domestic assets mangers will get more flexibility in managing assets of foreign portfolio investors (FPI) with the Securities and Exchange Board of India (Sebi) proposing to lift some of the curbs laid out in mutual fund regulations on management of offshore pool assets. Some of the requirements like appointment of separate fund manager
and replication of portfolio of schemes managed under offshore pool assets will be removed to help local mutual funds to manage more global funds. Sebi may even drop criteria that offshore fund has to be a broad-based fund i.e. the fund has at least 20 investors and no single investor accounts for more than 25 per cent of corpus of the fund.
Keeping in view the challenges faced by the local fund managers in
managing offshore-pooled assets it is proposed that the requirements laid out in regulation 24(b) of Sebi MF regulations may not be applicable to category I FPI and category II FPIs, said Sebi consultative paper.
The category I FPIs include government and government related entities, while category II includes both broad-based entities such as mutual funds, investments trusts, and persons such as portfolio managers, investment managers, asset management companies and banks.
(AGENCIES)
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