Foreign funds can issue participatory notes to investors, India's GIFT regulator says
Also Read | CEO Tim Cook satisfied with Apple's 'strong double-digit growth' in India as company reports record revenues The International Financial Services Centre Authority (IFSCA), which regulates financial services at GIFT City in Gujarat state, already allows banks to issue P-Notes. Also Read | Dabur share price gains as brokerages maintain bullish view after Q4 results; Should you buy the stock? Foreign funds issuing the notes would need to meet compliance requirements of IFSCA and the Securities and Exchange Board of India.
Also Read | Indian stock market: 6 key things that changed for market overnight - Gift Nifty, Apple earnings to US jobless claims Authorities have been easing norms for foreign funds that have set up shop in GIFT City, which seeks to become a key financial centre. Earlier this week, foreign funds at GIFT City were allowed to take full investment from non-resident Indians.
Also Read | Demat Account: Planning to gift shares? Here's how the process works Owing to their opaque nature, P-Notes have long faced heightened scrutiny and stricter compliances from India, forcing these structures to be issued from overseas jurisdictions. The latest relaxation could help in shifting some of these structures to India's GIFT City, analysts said.Milestone Alert!
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