The Securities and Exchange Board of India has not been giving permission to foreign portfolio investors (FPIs) to transfer assets through a provision which was previously in common use. An FPI could earlier transfer assets between its arms, in the wake of a merger of schemes or similar reorganisation, through an application to the markets regulator.
This ‘free of cost’ transfer was allowed if end-beneficiaries were the same in both entities. Such permissions have, however, been hard to come by in the past 12-18 months, say three people who are familiar with the matter.
Source- Business Standard.