New Delhi, Jan. 16 -- The Securities and Exchange Board of India on Friday proposed a change that would allow foreign portfolio investors (FPIs) to settle only the net value of their trades instead of each transaction separately.

The move, which has been long-awaited, is expected to reduce costs and make Indian markets more attractive to overseas investors. Sebi announced the release of its consultation paper earlier this morning.

The markets regulator has sought the changes "in order to enhance operational efficiency and reduce cost of funding" for foreign investors, it said in a consultation paper.

Currently, FPIs have to settle every buy and sell order separately, even if they trade the same stock on the same day. This means investo...