MUMBAI - India’s market regulator on Friday relaxed norms on foreign investments by Indians based abroad after concerns over stricter regulations rattled markets earlier this month.

The Securities and Exchange Board of India (SEBI) said it accepted the recommendations by a panel it had set up to review the rules for foreign portfolio investments.

Earlier this month, Indian markets fell sharply after a group of fund managers raised fresh concerns over an April circular from the market regulator related to rules on foreign funds ownership by entities of Indian origin, which they said could lead to massive dollar outflows from the economy.

The panel, headed by a former central bank deputy governor, had suggested, among other changes, that non-resident Indians be allowed to invest as foreign portfolio investors if a single holding is under 25 percent and group holding is under 50 percent in a fund.

Reporting by Abhirup Roy and Suvashree Dey Choudhury; Editing by Subhranshu Sahu

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