Experts attributed outflows in the debt markets to sell-off in bonds globally, rise in global crude oil prices and uncertainty on rate cut by the Reserve Bank of India (RBI).

As per the existing norms, a fund manager who is managing a domestic scheme, is allowed to manage an offshore fund, subject to three specific conditions.

Jittery foreign investors have pulled out a staggering Rs 12,256 crore from capital markets in the first week of May amid mounting worries over the 20-per cent minimum alternate tax that they fear could be imposed on their profits.

\"Such a modern tax system, which is friendly to the people and businesses, would be a key to realizing the goal of a double digit growth,\" Jaitley said.

As per the guidelines, FDI of up to 26 per cent come under automatic route and beyond 26 per cent and up to 49 per cent government approval is needed.

The cross-currency headwinds crimped quarterly revenue growth of the domestic US $146-billion IT industry by 2.25 to 3.00 percentage points in the final three months of 2014-15.

A downturn in core inflation or wage growth in US could force the Federal Reserve to delay the increase to borrowing costs, US Fed Chair Janet Yellen said on Friday.

FTSE's move includes Eicher Motors, Motherson Sumi Systems, Zee Entertainment Enterprises, Godrej Consumer Products, Aurobindo Pharma, Shree Cement and Cadila Healthcare.

The Minister of State for Finance also assured foreign investors that tax issues will be addressed appropriately in the next Budget.

Market analysts attributed the huge inflow to low inflation levels and the surprise rate cut by RBI on January 14, when it slashed the repo rate by 25 basis points.

Sebi has suggested to do away with the rule that requires appointment of separate fund manager for managing an offshore fund.

Currently, mutual funds are required to have three colours for their schemes which will be increased to five, sources said.

Foreign Portfolio Investors (FPIs), a newly created class for overseas investors, will be able to invest up to $81 billion (close to Rs 4 lakh crore) in government and corporate debt securities in India.

Market regulator Sebi has said one FPI can hold a maximum of 10 per cent of a company's equity shares, while existing overseas investor classes such as FIIs, sub-accounts and qualified foreign investors (QFIs) need to convert to the new FPI regime eventually.

Foreign portfolio investor has been created as a new class for all kinds of overseas entities investing in domestic capital markets and they would subsume existing categories like FIIs and their sub-accounts.

In a major overhaul of foreign investment regime, the government is considering splitting overseas inflows into two categories-Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI)-with a minimum composite cap of 49 per cent.

Tightening norms for issue of participatory notes (P-Notes) by overseas investors, Sebi has barred \"unregulated\" foreign funds from dealing in offshore derivative instruments even if their investment managers are appropriately regulated by their concerned regulators.

From large corporates such as Sahara to unknown individuals perpetrating SMS investment scams, it was an year marked by lot many penal actions and even more policy measures by Sebi to safeguard the investors interest.

The new regulations, which were approved by Sebi's board over weekend and would be notified soon, also contain a detailed 'Code of Conduct' for the foreign portfolio investors (FPIs).

Market regulator Sebi will soon notify new rules to make it easier for foreign entities to invest in Indian markets following finalisation of the necessary regulatory changes by the government for a major overhaul of the existing regulations for overseas investments.