Welcoming the suggestions made by a panel on simplifying norms for foreign investors, Finance Minister P Chidambaram today said the recommendations would be discussed at market regulator Sebi's board meeting on June 25.
"My preliminary view is that we are broadly in favour of the Chandrasekhar committee recommendations... We think the Chandrashekhar committee report is extremely positive and they deserve to be accepted, ofcourse after the discussion," Chidambaram said here.
A Sebi-appointed committee, headed by former Cabinet Secretary K M Chandrasekhar, yesterday recommended a slew of measures, including simplified registration process for foreign investors and classifying them into a single category.
The panel has also suggested that Know Your Client (KYC) rules should be based on the risk profile of investors.
Addressing a press conference, Chidambaram said the recommendations would be discussed at Sebi's board meeting scheduled to be held on June 25.
"Government's views have been sought, we are discussing the matter... There are other board members and after taking note of their views, we will announce the decisions," he added.
Chidambaram also expressed confidence that the decision to increase foreign investment limit in government securities would encourage overseas investors to invest in the domestic debt market.
India yesterday raised the limit for foreign investment in government dated securities by USD 5 billion to USD 30 billion.
According to the Minister, Sebi's decision would "encourage SWFs, foregin banks to use the special window to invest in indian debt market".
Indian bond markets give better returns than most of the other markets, he added.
The enhanced limit of USD 5 billion would be available only for long-term investors such as Sovereign Wealth Funds (SWFs), Multilateral Agencies, Pension/Insurance/ Endowment funds and foreign central banks.
The government is looking at ways to bolster overseas capital inflows amid falling rupee.