Mumbai, Aug 21 (IANS): Market regulator Sebi on Wednesday eased the rules for foreign portfolio investors (FPI) doing away with the broad-based eligibility criteria for FPIs and announced that the registration for the multiple investment manager structure would be simplified.

Proposing the new regulations for FPIs, Sebi Chairman Ajay Tyagi said that central banks of other countries are now also eligible to be FPIs. These would now be permitted to transfer unlisted illiquid shares off market.

The Securities and Exchanges Board of India (SEBI) in its board meet on Wednesday also decided to allow offshore funds of Indian mutual funds (MFs) to invest as FPIs.

Besides, the FPIs will now be categorised into two classes, cutting down from the current three categories. The board also amended regulations concerning credit rating agencies.

Tyagi said the regulator is examining the possibility of allowing MFs to join inter-creditor arrangements.

Sebi, on Wednesday, also approved changes to the norms prohibiting insider trading.