The board also approved a proposal to tighten the rules for participatory notes through imposition of a regulatory fee on issuers of such instruments.
Markets regulator Sebi on Wednesday relaxed takeover norms for acquisition of stressed assets to help the government and the Reserve Bank of India in their efforts to tackle bad loans.
After a board meeting in Mumbai on Wednesday, Sebi chairman Ajay Tyagi said the regulator has decided to ease norms for acquisition of distressed assets of listed companies.
The board also approved a proposal to tighten the rules for participatory notes through imposition of a regulatory fee on issuers of such instruments.
Tyagi, however, said there is no proposal to completely ban these instruments as they can be useful for new foreign investors looking to test the Indian markets.
"Sebi would want foreign investors to come directly but P-notes also have their usefulness," Tyagi told reporters in Mumbai.
Besides, Sebi would issue discussion paper for easier registration of foreign investors. Another discussion paper would be floated for ways to help develop equity derivatives markets.
Photograph: Reuters
