The Securities & Exchange Board of India (Sebi) is all set to ease know your customer (KYC) norms for those foreign institutional investors (FIIs) which have a strong track record of compliance with Indian rules & regulations.

Sebi Chairman U. K. Sinha said that the capital market regulator would soon formulate its new regulations to implement the government's amendment in the anti-money laundering rules.

Announcing the planned move, Mr. Sinha said, "Last week the Government of India amended the anti-money laundering rules. Next week we are going to formulate our regulations implementing this and a large number of long-only funds will find it easier to invest in India now."

Following the changes, which are in line with the recommendations of the KM Chandrasekhar Committee, the requirements for well regulated FIIs would be minimal. The KM Chandrasekhar Committee's recommendations were submitted to the capital market regulator on 12th of June this year and the regulator accepted the recommendations on 25th of the same month.

The change is expected to arrest huge withdrawals of money by FIIs from the Indian stock and debt markets. Between July and August this year, FIIs withdrew a net of $9.24 billion from the Indian debt market.