In a move to enhance operational efficiency and respond to concerns raised by Foreign Portfolio Investors (FPIs), SEBI has introduced measures to speed up the availability of sale proceeds for FPIs, bringing them on par in this regard with domestic institutional investors. FPIs previously reported delays in their access to sale proceeds beyond the standard ‘T+1’ settlement date. These delays were primarily due to the erstwhile process adopted for obtaining tax clearance on their net sale proceeds, to ensure compliance with FEMA Regulations. To address this issue, SEBI engaged in consultations with key stakeholders, including FPIs, clearing corporations, custodians, and tax consultants. This collaborative effort led to significant process improvements, making sale proceeds available to FPIs on settlement day, bringing them on par with domestic institutional participants. Under the new system, in place since September 9, 2024, tax certificates for FPI sale trades executed on ‘T’ day are issued by tax consultants by 9:00 AM IST on ‘T+1’ day. This allows FPIs to access sale proceeds, either for repatriation or for reinvestment, on the same ‘T+1’ day. It is broadly estimated that efficiency gains on account of these revised processes would be around INR 2,000 Crore per annum. Said SEBI in its letter.