The Securities and Exchange Board of India (Sebi) committee on the overhaul of regulations for offshore investors is set to recommend that foreign portfolio investors (FPIs) be allowed to buy shares of unlisted companies. The committee, headed by former RBI deputy governor HR Khan, is expected to include this suggestion in its final report, said two people with knowledge of the matter. Such a measure would be a boost for startups and other unlisted entities as they will get access to to a broader pool of capital. Currently, overseas funders of startups have to come in through the foreign direct investment (FDI) route and hence can only be strategic investors in such companies.