Indian money going abroad is RBI’s call, not ours, says SEBI chief

New business data points to the fact that SEBI chairman Tuhin Kanta Pandey on Wednesday clarified that limits on how much money can be sent abroad rest with the RBI, days after the market regulator allowed portfolio managers to invest client funds overseas.

Speaking at the Association of Portfolio Managers in India (APMI) annual conference, Pandey was asked whether the new permission could lead to more Indian money moving out of the country. He stated how much can go out, and in what manner, is a matter for the RBI, and that everything must be consistent with the Liberalised Remittance Scheme (LRS) and FEMA rules.

SEBI's board approved the SEBI (Portfolio Managers) Regulations, 2026 on 24 September. They permit discretionary and non-discretionary portfolio managers to invest in specified overseas securities, including listed equity and debt, REITs, overseas mutual funds, ETFs, index funds and foreign government debt. The permission is subject to FEMA and the RBI's LRS.

The chairman did not go into how the limits would apply to PMS clients' overseas allocations. He pointed to the RBI on that.

Registration documents through SWIFT

Pandey additionally stated the RBI is looking at allowing FPI registration documents to be uploaded through SWIFT.

He stated SEBI and the RBI are working to make FPI registration faster, seamless and digital. He listed steps already taken: a revamped NSDL front end, the India Market Access portal, a common application portal that allows tracking, digital signatures in place of wet signatures, and e-power of attorney. These reduce the need for notarisation, apostille and consularisation, he stated.

Asked around the Indian market's recent slide compared with Japan and Korea, Pandey stated where to invest is for market participants to decide and it would not be appropriate for regulators to comment. He stated the regulators' focus is on making registration easier.

Responding to a question on listed firms with no visible business activity, Pandey stated exchanges have a continuing duty to monitor firms after stock-exchange debut. Where a firm is not physically present or carrying out economic activity, delisting provisions exist, and delistings have taken place before. He stated the process should be pursued properly, as market participants need confidence that listed firms are genuine.

He stated physical verification by exchanges is feasible. On promoter-level deals at unlisted holding firms, he stated SEBI must act in line with the Firms Act and the stock-exchange debut regulations