Sebi eases disclosure norm for FPIs, doubles assets threshold to Rs 50,000 cr

The Securities and Exchange Board of India (Sebi) has eased disclosure norms for overseas portfolio traders (FPIs) by rising the asset threshold for granular helpful possession disclosures from Rs 25,000 crore to Rs 50,000 crore.
This transfer is available in response to the numerous progress out there measurement, with money fairness buying and selling volumes greater than doubling between FY 2022-23 and FY 2024-25.
According to PTI report, below the brand new framework FPIs (both individually or as a gaggle) holding greater than Rs 50,000 crore of fairness assets below administration (AUM) in Indian markets at the moment are required to disclose detailed details about all entities holding any possession, financial curiosity, or exercising management, on a full look-through foundation.
The revised threshold and disclosure necessities will come into impact instantly. Sebi’s board had permitted this proposal final month.
In August 2023, Sebi had mandated that FPIs holding over 50% of their fairness AUM in a single company group or with general fairness holdings exceeding Rs 25,000 crore in Indian markets disclose granular possession particulars.
Certain FPIs, together with these with a broad-based, pooled construction or government-related traders, are exempt from these extra disclosure necessities, topic to particular circumstances.
The measurement standards had been launched to stop giant FPIs from circumventing the stipulations of Press Note 3, which goals to shield the orderly functioning of the Indian securities markets by guaranteeing transparency and accountability in possession and management.