MUMBAI: The Securities and Exchange Board of India (Sebi) on Monday raised the threshold for FPI disclosure for granular ownership disclosures from Rs 25,000 crore to Rs50,000 crore, aiming to ease compliance requirements while maintaining transparency.
The market regulator also decided to review conflict-of-interest provisions and disclosure norms for its members and top officials.
These decisions were taken at Sebi’s board meeting in Mumbai, the first under the chairmanship of Tuhin Kanta Pandey.
Changes in FPI disclosure norms
Sebi introduced granular ownership disclosure norms in August 2023, requiring FPIs with assets under custody (AUC) exceeding Rs 25,000 crore – or those with more than 50 per cent of their AUC concentrated in a single corporate group – to provide additional details about their ultimate beneficiaries.
With the threshold now doubled to Rs50,000 crore, only larger FPIs will need to comply with these disclosure norms, reducing regulatory burden on smaller investors while preserving market oversight.
Granular ownership disclosures are intended to enhance transparency by revealing the underlying ownership structure of FPIs, particularly to identify high-risk entities, concentrated holdings, or potential market manipulation risks.
Other key decisions
Sebi’s board also approved several other regulatory changes:
- Alternative Investment Funds (AIFs): Investment norms for AIFs investing in debt securities have been relaxed.
- Market Infrastructure Institutions (MIIs): The process for appointing Public Interest Directors (PIDs) and Key Managerial Personnel (KMPs) at MIIs has been modified.
- Investment Advisers & Research Analysts: Flexibility in fee collection norms has been introduced.
Review of conflict-of-interest framework
To strengthen governance and ethical conduct within the regulatory ecosystem, Sebi has set up a high-level committee (HLC) to review conflict-of-interest provisions.
The panel, comprising industry experts and eminent personalities, will evaluate existing norms and recommend measures to enhance transparency, accountability, and ethical standards for Sebi members and officials.
The HLC is expected to submit its recommendations within three months, which will then be presented to the board for consideration. Sebi will announce the names of committee members in due course.
