SEBI proposes doubling additional-disclosure threshold for FPIs having Rs 25,000-cr exposure

The market regulator SEBI has proposed doubling the threshold for deciding eligibility of foreign portfolio investors (FPIs) who have to make additional disclosures.

One of the criteria to determine the eligibility of these FPIs is their exposure to the Indian securities market. Currently, FPIs who hold more than Rs 25,000 crore of equity assets under management (AUM) in the Indian market have to make these disclosures.

In a consultation paper issued on January 10, SEBI has suggested raising the bar to an AUM of Rs 50,000 crore, to keep in line with the increase in market volumes.

The circular said, "Under the additional disclosure framework for FPIs specified vide SEBI’s Circular dated August 24, 2023 (“August Circular”), with a view to guard against potential circumvention of Press Note 3 stipulations, certain FPIs/investor groups with equity assets under management (‘AUM’) exceeding Rs 25,000 crore are required to provide granular details of all their investors/stakeholders on a look-through basis. Given the rise in market volumes since the limit was set, it is proposed to increase such threshold from Rs 25,000 crore to Rs 50,000 crore."