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Sebi enhances disclosure requirements for certain Foreign Portfolio Investors

Regulator has tweaked rules pertaining to the eligibility criteria for FPIs

Our Special Correspondent New Delhi Published 12.08.23, 06:53 AM
Representational image.

Representational image. File photo

Sebi has mandated enhanced disclosures for a certain class of Foreign Portfolio Investors (FPIs), including furnishing details about ownership and economic interests, to ensure greater transparency.

In addition, the regulator has tweaked rules pertaining to the eligibility criteria for FPIs.


“A foreign portfolio investor that fulfils the criteria specified by the board from time to time shall provide information or documents in relation to the persons with any ownership, economic interest or control, in the foreign portfolio investor,” Sebi said in a notification amending the rules on Thursday.

The information or documents will be provided in the manner specified by the Securities and Exchange Board of India (Sebi).

Further, applicants with investors contributing 25 per cent or more in the corpus that are mentioned in the sanctions list by United Nations (UN) Security Council are ineligible for registration as FPIs, the regulator had said in June.

The Prevention of Money Laundering (PML) Rules threshold requirements for identifying Beneficial Owners (BO) in FPIs were amended in March.

Subsequently, the threshold is 10 per cent for companies and trusts, and 15 per cent for partnerships and unincorporated associations or bodies of individuals.

AMC norms

The Securities and Exchange Board of India (Sebi) on Friday announced a new timeline with regard to the exit option window period given to the mutual fund unitholders for change in control of an asset management company (AMC).

The market regulator said in a circular that with growth in technological communication enabling faster dissemination of information to unitholders, a request has been received from the industry to review the timeline for exit option window period for change in control of an AMC.

After the matter was discussed in the Mutual Funds Advisory Committee (MFAC), based on its recommendations, it is now modifying the earlier rules.

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