For many Non-Resident Indians (NRIs), returning to India after retirement brings with it the challenge of making secure investments. Recent updates from the Securities and Exchange Board of India (SEBI) offer various regulated investment options aimed at curbing unregulated schemes that promise high returns but carry significant risks.
SEBI has introduced a new scheme for high-net-worth individuals requiring a minimum investment of INR 1 million, aimed at promoting safe investment practices. This framework includes restrictions on investing in unlisted and unrated instruments, and limits exposure to derivatives, safeguarding investors from potential market volatility.
Additionally, SEBI has launched the ‘MF Lite’ initiative, which simplifies regulations for passive investments like index funds and exchange-traded funds (ETFs). With minimal discretion on the part of asset managers, this initiative is expected to attract new fund managers, thereby enhancing the range of passive investment options for investors.
Furthermore, the investment advisory landscape is becoming more accessible. SEBI has relaxed qualification requirements for investment advisers and research analysts, encouraging more professionals to join the field. Investors can also benefit from new trading options, such as using the UPI block mechanism or three-in-one trading accounts, enhancing convenience when trading in the secondary market.
These measures reflect SEBI’s commitment to ensuring that NRIs returning home can invest their savings in safe, well-regulated options, avoiding pitfalls associated with high-risk schemes.
