SEBI Bets on Easier Trading to Boost Foreign Investment
What Happened
SEBI is planning a major overhaul of trading rules, including lower collateral requirements, easier short-selling and expanded stock lending, to make Indian markets more attractive to foreign investors. The reforms could be rolled out within nine months as foreign ownership of Indian equities has fallen to a 17-year low, with overseas investors selling over $50 billion worth of shares since late 2024.
Key Takeaways
The regulator hopes the changes will improve India's appeal in global indices, attract long-term foreign capital and strengthen the country's position against competing Asian markets.