Monday, January 13, 2025
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Home BuisnessMarket Insight FPIs: SEBI raises threshold for making granular disclosures to Rs. 50,000 crore is planned

FPIs: SEBI raises threshold for making granular disclosures to Rs. 50,000 crore is planned

by PratapDarpan
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Sebi on Friday doubled the threshold amount for foreign portfolio investors to make granular disclosures about the ownership or financial interest of their investees to Rs. 50,000 crore was proposed. Currently, Rs. Certain foreign portfolio investors (FPIs) with equity assets under management (AUM) of more than Rs 25,000 crore are required to provide granular details of all their investors or stakeholders on a look-through basis.

The norms are intended to prevent possible round-tripping by certain promoters using the FPI route.

Data for the average daily turnover in capital market segment at NSE in FY 2022-23 is Rs. 53,434 crore in FY 2024-25 (up to December 2024) by 122 percent to Rs. 1,18,757 crores.

“In view of the increase in market turnover, the size criterion is proposed to be increased to Rs 50,000 crore from the existing Rs 25,000 crore,” Sebi said in its consultation paper.

The Securities and Exchange Board of India (SEBI) has invited public comments on the proposal till January 31.

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    In August 2023, SEBI directed FPIs who hold more than 50 per cent of their equity AUM in a single corporate group or in the Indian equity market up to Rs. have aggregate holdings of over Rs 25,000 crore, directed them to disclose granular details of all entities with any ownership. , economic interest, or exercise of control in the FPI.

    Certain FPIs, which have a broad-based, integrated structure with a broad investor base or have ownership interest by the government or government-related investors are exempted from such additional disclosure requirements subject to certain conditions.

    The measure was specified with a view to guard against possible fraud of the terms of Press Note 3 by FPIs with large Indian equity portfolios, whose actions are likely to disrupt the orderly functioning of the Indian securities markets.

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