Sebi Doubles Disclosure Threshold for Foreign Investors

Sebi's board has approved a proposal to increase the investment threshold for detailed disclosures by foreign portfolio investors (FPIs) to Rs 50,000 crore. This move addresses changing market dynamics while keeping other criteria unchanged, affecting FPIs with significant assets in Indian equity markets.

The Securities and Exchange Board of India (Sebi) has made a significant change by raising the investment threshold requiring detailed disclosures from foreign portfolio investors (FPIs). This new regulation, approved in a board meeting on Monday, increases the threshold from Rs 25,000 crore to Rs 50,000 crore.

This adjustment comes in response to heightened trading volumes in cash equity markets, which have more than doubled recently. Sebi Chairman Tuhin Kanta Pandey disclosed that FPIs now managing over Rs 50,000 crore in equity assets will need to provide additional investor information.

Nevertheless, certain FPIs, such as those with broad-based structures or government ownership, are exempt from this requirement. The change aims to prevent potential market disruptions and ensure a transparent investment environment.

(With inputs from agencies.)