The Securities and exchange Board of India (SEBI) on October 16, 2024, issued the notification regarding the Process improvements under SEBI’s initiative to make sale proceeds available to Foreign Portfolio Investors (FPIs) on settlement day itself.
The following has been stated namely: -
• SEBI has introduced measures to speed up the availability of sale proceeds for FPIs, bringing them on par in this regard with domestic institutional investors.
• FPIs previously reported delays in their access to sale proceeds beyond the standard ‘T+1’ settlement date. These delays were primarily due to the erstwhile process adopted for obtaining tax clearance on their net sale proceeds, to ensure compliance with FEMA Regulations.
• Under the new system, in place since September 09, 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.
