Easing the disclosure norms for overseas portfolio buyers (FPIs), markets regulator Sebi on Wednesday doubled the asset threshold to Rs 50,000 crore for making granular helpful possession disclosures.
The choice has been taken amid a rise available in the market measurement. Money fairness markets’ buying and selling volumes have greater than doubled between FY 2022-23 and FY 2024-25.
Accordingly, it has been determined to extend the edge beneath measurement standards from Rs 25,000 crore to Rs 50,000 crore, the Securities and Change Board of India (Sebi) stated in a round.
Now, FPIs (individually or as an investor group), holding greater than Rs 50,000 crore of fairness AUM in Indian markets are required to reveal particulars of all entities holding any possession, financial curiosity, or management, on a full look by means of foundation.
The brand new framework will come into power with quick impact, Sebi added. Final month, the board of Sebi accepted a proposal on this regard.
In August 2023, Sebi had directed FPIs, who have been holding over 50 per cent of their fairness AUM in a single company group or with an general holding in Indian fairness markets of greater than Rs 25,000 crore, to reveal granular particulars of all entities holding any possession, financial curiosity, or exercising management within the FPI.
Sure FPIs, together with these having a broad-based, pooled construction with widespread investor base or these having possession curiosity by the federal government or government-related buyers have been exempted from such further disclosure necessities, topic to sure situations.
The dimensions standards have been specified with a view to guarding towards the potential circumvention of Press Notice 3 stipulations by FPIs with giant Indian fairness portfolios, with the potential to disrupt orderly functioning of Indian securities markets by their actions.
