New Delhi: Capital market regulator Sebi will soon announce more measures to improve the country's investment climate, including for foreign investors.
Sebi would be taking steps to attract more retail investors into the stock market besides charting out the operational framework for Foreign Institutional Investors (FIIs) as per suggestions made by the high-level Chandrasekhar committee, according to an official.
The Securities and Exchange Board of India (Sebi) would also look at framing regulations that are in tune with the new Companies Act.
Steps are being mulled to attract more retail investors to the markets as more of domestic savings have been channelised into physical assets of late and financial savings have undergone a marked decline.
The fresh measures to boost investor sentiment are likely to be announced after Sebi's next board meeting, which is expected to be held on October 5, the official said.
A panel headed by former Cabinet Secretary K M Chandrasekhar has suggested a slew of measures to attract more investments, especially from overseas entites, into the domestic market. The recommendations have been approved by Sebi board.
The market watchdog is merging different classes of investors such as FIIs, their Sub Accounts and Qualified Foreign Investors (QFIs) into a new category, FPIs, to put in place a simplified set of entry norms for them.
The FPIs would be categorised into three categories -- low-risk (for multi-lateral agencies, government and other sovereign entities), moderate risk (for banks, asset management companies, investment trusts, insurers, pension funds and university funds) and high-risk (all the FPIs not included in the first two categories).
Meanwhile, the third-category FPIs would not be allowed to issue Participatory Notes.
"The way forward for securities market is to create an atmosphere of trust in the market, confidence in the investor and efficiency in the system," Sebi had said in its latest annual report.