Sebi Doubles FPI Investment Threshold to Rs 50,000 Cr

Mumbai, Mar 24 (PTI) Markets regulator Sebi's board on Monday approved a proposal to double the investment threshold for granular disclosures by foreign portfolio investors (FPIs) to Rs 50,000 crore.

This is aimed at addressing the changing market dynamics without altering the concentration criteria, which remain unchanged.

At present, certain FPIs with equity assets under management (AUM) exceeding Rs 25,000 crore are required to provide granular details of all their investors or stakeholders on a look-through basis.

"Cash equity markets' trading volumes have more than doubled between FY 2022-23 and the current FY 2024-25. In light of this, the board approved a proposal to increase the applicable threshold from the present Rs 25,000 crore to Rs 50,000 crore," Sebi Chairman Tuhin Kanta Pandey told reporters here.

"Thus, FPIs holding more than Rs 50,000 crore in equity AUM in the Indian markets will now be required to make additional disclosures," he added.

This was the first board meeting under the newly-appointed chairman.

In August 2023, Sebi had directed FPIs, who were holding over 50 per cent 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, economic interest, or exercising control in the FPI.

Certain FPIs, including those having a broad-based, pooled structure with widespread investor base or those having ownership interest by the government or government-related investors have been exempted from such additional disclosure requirements, subject to certain conditions.

The size criteria were specified with a view to guarding against the potential circumvention of Press Note 3 stipulations by FPIs with large Indian equity portfolios, with the potential to disrupt orderly functioning of Indian securities markets by their actions.