The Securities and Exchange Board of India (SEBI) has raised the disclosure threshold for foreign portfolio investors (FPIs) from ₹25,000 crore to ₹50,000 crore. The decision was announced after the SEBI board meeting held on Monday.
This revision comes in response to the sharp increase in trading volumes in the cash equity market. Since the last threshold revision in FY 2022-23, market volumes have more than doubled, prompting SEBI to adjust disclosure norms accordingly.
Under the new rule, only FPIs holding more than ₹50,000 crore in Indian equities will be required to make additional disclosures. These disclosures aim to ensure compliance with the Prevention of Money Laundering Act (PMLA) and related regulations, thereby enhancing financial transparency.
SEBI clarified that while the threshold has been raised, FPIs with over 50% of their equity assets under management (AUM) concentrated in a single corporate group will still be subject to additional disclosure requirements.
Additionally, SEBI has relaxed investment norms for Category II Alternative Investment Funds (AIFs), allowing them to invest in listed debt securities rated ‘A’ or below.
SEBI Chairperson Tuhin Kanta Pandey stated that several funds, including sovereign and public funds, were already exempt from these disclosures, as existing PMLA and KYC regulations ensure investor compliance.
