SEBI proposes stiffer disclosure norms for ‘high-risk’ FPIs

The market regulator wants high-risk investors with more than half of their equity holding in a single entity to disclose more information.

The Securities and Exchange Board of India floated a consultation paper on Wednesday seeking additional disclosures from “high-risk” foreign portfolio investors to prevent violation of the minimum public shareholding rules.

The market regulator has estimated that high-risk FPIs holding Rs 2.6 lakh crore worth of assets under management as of March 31 may need to make these additional disclosures. These investors have either a 50% concentration threshold in a single entity or have a total investment of over Rs 25,000 crore in Indian equities.

As per the proposed rules, there will be a mandatory requirement of making granular disclosures around …

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Furquan Moharkan

Furquan leads the banking coverage at The Morning Context. A business journalist with eight years of experience and a best-selling author, in his earlier stints as a reporter with the Deccan Herald and a columnist at The Banker, he wrote on banking, financial markets and regulatory affairs. He has extensively covered India's debt market crisis, banking crisis and the fall of Yes Bank.

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