Custodians, who act as brokers for foreign portfolio investors (FPIs), plan to increase fees once the market regulator's directive on faster remittances comes into effect on September 9.
The Securities and Exchange Board of India (Sebi) has introduced same-day remittances for FPIs, allowing them to access funds on the next-day (T+1) basis as opposed to the current T+2 basis.
The move is expected to benefit FPIs from custodians who may face reduced interest income they pocket from client funds.
At present, custodians pocket interest - similar to the overnight bank rates on 1 trillion float.
Regulatory officials believe the benefits to FPIs will outweigh increased costs.
"FPIs will gain more than they lose due to the delay in funds, especially with high interest rates," a senior regulatory official said.
Most of the tax consultancy firms and custodians have agreed for a shorter timeline, said officials from the Big4.
"The custodians have been asked to provide details of the trade by 8 pm while the tax consultants are expected to give the computations by 9 am.
Denne historien er fra September 02, 2024-utgaven av Business Standard.
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Denne historien er fra September 02, 2024-utgaven av Business Standard.
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