FPIs Seek Relief from Sebi's Ownership Disclosure Rules Ahead of Deadline

Two Mauritius-based foreign portfolio investors have approached India's Securities Appellate Tribunal to seek more time to comply with new SEBI rules on ultimate beneficial ownership disclosure. The rules were introduced to enhance transparency and prevent round-tripping. The tribunal's decision could impact market stability.

Two Mauritius-based foreign portfolio investors have sought legal recourse to delay complying with SEBI's new rules on ultimate beneficial ownership disclosure as the September 9 deadline approaches.

The investors, LTS Investment Fund and Lotus Global Investment, reportedly petitioned the Securities Appellate Tribunal for an extension until March 2025. They argue the current deadline does not allow adequate time to meet the new requirements. The move comes after these funds were named in a report concerning the Adani Group by Hindenburg Research earlier this year.

SEBI aims to curb potential round-tripping and increase transparency with these regulations. The tribunal's ruling, expected soon, may affect market sentiments, with some overseas funds potentially selling off holdings to comply.

(With inputs from agencies.)