Capital markets regulator Sebi on Tuesday said it would shorten the time required to grant registration to FPIs (Foreign Portfolio Investors), a move that will help simplify the business environment.

In addition, the board approved a framework for adopting cloud services by Sebi Regulated Entities (REs). This will be a principles-based framework with nine principles that RE must follow to deploy cloud services.

Regarding foreign investors, Sebi said it had approved proposals to add FPI procedural requirements to shorten further the time required to grant registration to such investors.

Under the proposal, the regulator will approve the registration based on post-transaction verification of the application form, scanned copies of supporting documents and activation of physical documents, according to a statement issued by the regulator after the board meeting.

Additionally, Sebi will accept digital signatures from FPIs to execute registration-related documents and allow Designated Depository Participants (DDPs) to validate PANs through the Common Application Form (CAF) module available on the depositary website.

Additionally, it will allow FPI applicants to submit a unique investor group ID instead of full details of group members.

Sebi will allow “authorised bank officials to use the SWIFT mechanism to verify original copies of documents submitted by FPIs to the DDP”. This will reduce the time required to move and register documents physically.

Regarding RE’s framework for the adoption of cloud services, Sebi said that the framework highlights aspects related to the adoption of cloud services, such as risk assessment, regulatory and legal compliance, rights, duties and responsibilities of REs, mandatory security measures and controls and Sebi and rights to other government agencies.

“The framework will help REs leverage cloud computing and develop a new approach to deal with various issues related to cloud services, such as protection of sensitive information, country risk, disaster recovery, concentration risk, etc.,” Sebi said.

Also, the Sebi board has approved specific regulatory interventions in the corporate bond market.

To better protect the interests of the debenture holders, SEBI has decided that issuers of listed debt securities shall incorporate suitable provisions in their articles of association to impose an obligation on the Board of Directors of the issuer to appoint a nominee by it Could Debenture Trustee (DT) as a director in the event of default.

In addition, corresponding amendments will be made to the debenture trust deed. Existing listed debt issuers have until September 30, 2023, to complete the necessary work.

To address any possible inefficiencies and delays due to the absence of a regulatory body, it has been decided that the public offering of debt securities and non-convertible redeemable preference shares (NCRP) will be open for a subscription period of at least three business days and a maximum of 10 business day.

Currently, there needs to be a regulation regarding the period for which public offerings of debt securities or NCRPS should remain open.