Sebi proposes to relax disclosure framework for certain FPIs

The Securities and Exchange Board of India (Sebi) has proposed to relax disclosure norms for large foreign portfolio investors belonging to land-bordering countries (LBCs).

It has suggested linking disclosure requirements to a minimum threshold for identification of a foreign portfolio investor (FPI) as an LBC or non-LBC entity.

If the entities own more than 50% of the assets under management of the FPI from LBC, then they would be exempted from granular disclosures requirement, Sebi said in a discussion paper on Tuesday. Further, if the entities own more than 67% of the assets under management of the FPI from non-LBC, the FPI would not be required to make granular disclosures.


The regulator said if these thresholds are not met, the FPI would be required to disclose granular details of all entities owning and holding economic interest in the FPI.