Stories
SEBI: RBI Controls Indian Money Going Abroad, Not Us
- •SEBI Chairman Tuhin Kanta Pandey clarified that the Reserve Bank of India (RBI) sets limits on money sent abroad, not SEBI, despite the market regulator allowing portfolio managers to invest client funds overseas.
- •Pandey stated that any overseas investment must align with the Liberalised Remittance Scheme (LRS) and FEMA rules, which are under the RBI's purview.
- •SEBI's board approved new regulations on September 24, 2026, permitting portfolio managers to invest in specified overseas securities, including listed equity, debt, REITs, and foreign government debt.
- •SEBI and RBI are collaborating to streamline and digitize FPI registration, with RBI considering allowing FPI registration documents to be uploaded via SWIFT.
- •Pandey emphasized that exchanges have a continuous duty to monitor listed companies for economic activity, and delisting provisions exist for non-compliant firms to ensure investor confidence.
Key Questions Answered
SEBI chairman Tuhin Kanta Pandey clarified that the limits and manner regarding how much money can be sent abroad rest entirely with the Reserve Bank of India, and all overseas investments must comply with the Liberalised Remittance Scheme (LRS) and FEMA rules.
The SEBI board approved the SEBI (Portfolio Managers) Regulations, 2026 on September 24, allowing both discretionary and non-discretionary portfolio managers to invest client funds in specified overseas securities.
SEBI and the RBI are working to make Foreign Portfolio Investor (FPI) registration faster and digital by allowing registration documents to be uploaded via SWIFT. Additional steps taken include a revamped NSDL front end, a common application portal, and digital signatures to reduce notarisation needs.
