SEBI Raises Threshold For Additional FPI Disclosures To Rs 50,000 Crore

The Securities and Exchange Board of India on Wednesday raised the threshold for additional disclosures by foreign portfolio investors from Rs 25,000 crore to Rs 50,000 crore.

In August 2023, the markets regulator had directed FPIs, who were holding over 50% of their equity AUM in a single corporate group or with an overall holding in Indian equity markets of more than Rs 25,000 crore, to disclose granular details of all entities holding any ownership or economic interest or exercising control in the FPI.

The decision to increase additional disclosure norms has been taken amid an increase in the market size. Cash equity markets' trading volumes have more than doubled between FY23 and FY25.

The new framework will come into force with immediate effect, SEBI added. The board approved a proposal in this regard last month.

The size criteria were specified with a view to guarding against the potential circumvention of rule stipulations by FPIs with large Indian equity portfolios, with the potential to disrupt the orderly functioning of Indian securities markets by their actions.

As per data with the NSDL, FPIs have pulled out over Rs 1 lakh crore from Indian markets so far this year, compared to an infusion of Rs 1.65 lakh crore in 2024.