The Securities and Exchange Board of India (SEBI) has approved a key amendment to its disclosure framework for foreign investors, increasing the threshold for granular ownership disclosures. As per the latest decision, foreign portfolio investors (FPIs) will now be required to submit detailed ownership information only if their assets under management (AUM) in Indian equities exceed ₹500 billion.
This move comes as part of SEBI’s ongoing efforts to balance transparency and ease of investment in the Indian capital markets. The revised threshold is significantly higher than the earlier limit, thereby easing compliance requirements for a large number of FPIs with lower exposure levels.
According to SEBI, the new framework aims to maintain regulatory oversight on substantial investors while avoiding undue disclosure burdens on smaller or mid-sized foreign institutions. The capital markets regulator clarified that the rule will continue to apply to high-AUM FPIs that have potential to influence Indian markets through concentrated holdings or significant investment positions.
This decision is expected to be well-received by the foreign investment community and could encourage greater participation by institutional investors in the Indian equity markets, without compromising on the regulator’s visibility over critical ownership data.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to risks, and readers should conduct their own research or consult a financial advisor before making any investment decisions.
