India Eases Trade Settlement Rules for Foreign Investors
India's regulator now allows large foreign investors to settle trades on a net basis. The move aims to lower costs and boost sentiment amid heavy outflows.
The markets regulator in India has introduced new measures to ease rules for foreign investors, aiming to bolster market sentiment during a period of record-high equity outflows. The move follows the heaviest withdrawal of funds by foreign entities in two decades.
The Securities and Exchange Board of India (SEBI) stated on Monday that large foreign investors will now be permitted to settle trades on a net basis. This is a significant shift from the existing requirement where each transaction had to be settled individually.
By allowing net settlement, the regulator expects to reduce the funding requirements for international investors and lower their overall trading costs.
Large foreign investors can settle trades on a net basis instead of the current requirement to settle each transaction separately, reducing their funding requirements and overall trading costs.
The policy change is part of a broader effort by the regulator to maintain the attractiveness of the Indian equity market amidst volatile global conditions.
