Markets regulator Sebi today allowed mutual funds, alternative investment funds and portfolio managers, operating in international financial services centres (IFSC), to invest in securities listed in such centres.
Besides, they are permitted to invest in securities issued by companies incorporated in IFSC, Securities and Exchange Board of India (Sebi) said in a circular.
Further, they can also invest in securities issued by firms incorporated in India or companies belonging to foreign jurisdiction, it added.
These investments are subject to conditions stipulated or issued by RBI and government from time to time.
Besides, Sebi said "such portfolio manager, alternative investment fund or mutual fund shall invest in India through the foreign portfolio investor route".
The markets watchdog, in March 2015, had issued a detailed set of guidelines for establishing IFSCs as part of its efforts for setting up financial hubs in the country. The first such centre has been set up in Gujarat's GIFT City.
Under the IFSC regime, any recognised domestic or foreign stock exchange can set up a subsidiary, in the financial services centre, provided they hold at least 51 percent stake in the venture.
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