Sebi’s board meets on Monday with a full plate, and the big focus is on easing how foreign investors move money in and out of Indian markets.

One proposal up for discussion could change how Foreign Portfolio Investors (FPIs) settle trades. Right now, they follow a gross settlement system, every buy order has to be funded separately, even if they’ve sold shares the same day.

Sebi wants to allow “netting of funds”. That would let FPIs use money from same-day sales to cover purchases, so they only pay the net amount at the end of the day.

The change is aimed at cutting funding pressure and transaction costs. It could make a difference on index rebalancing days, when trades spike and investors need more cash on hand.

It may also reduce forex costs caused by timing gaps between inflows and outflows. The current system has drawn criticism for forcing FPIs to arrange funds for an extra day, which adds to costs.

This will be the fifth board meeting under Sebi Chairman Tuhin Kanta Pandey, who took charge on March 1, 2025. There’s more on the table. The board will review rules around who qualifies as a “fit and proper person” for market intermediaries.

One proposal suggests dropping the clause that treats the start of winding-up proceedings as a disqualification. Instead, only a final winding-up order would count. Sebi is also looking to formally include the right to a hearing in its rules.

While hearings are already given in practice, the idea is to spell it out clearly to avoid confusion. Measures linked to ease of doing business for REITs and InvITs will also be discussed.

Another key item is a report from a high-level panel on conflict of interest and transparency. The panel has suggested stricter disclosures and a “zero-tolerance” approach for conflicts involving senior Sebi officials.

The board is expected to take a call on these proposals after discussions.