SEBI seeks more info on FIIs investment structure

Market regulator, Securities and Exchange Board of India, has directed foreign institutional investors to disclose more information about their investment structure in India.

"It is not about FIIs investment, it is about what structures FIIs have for their investments in India," SEBI Chairman, C B Bhave, told reporters on the sidelines of a FICCI-organised capital markets conference here on Tuesday.

SEBI had earlier asked FIIs which are registered on or before April 7, to declare whether they are a multi-class share vehicle or not, and that they are not structured as protected cell companies or segregated portfolio companies.

"We are currently looking at an expansionary phase of the markets.
However, it is for us to be facilitators in this process and in our hands to ensure that such growth is in an orderly and efficient manner," Bhave said.

The country needs to cut several transaction costs to grow its capital markets, he said, adding while volumes are large, ticket-size of transactions remains small, which puts increased pressure on costs. Bhave pointed out that the market regulator is also evaluating ways to cut brokerage costs related to the transaction of securities in the markets.