Sebi mulls relaxing disclosure framework on FPIs

New Delhi: Capital markets regulator Sebi on Wednesday proposed relaxing rules for certain Foreign Portfolio Investors (FPIs) from enhanced disclosure requirements in a bid to promote ease of doing business (EoDB). In its consultation paper, the regulator suggested exempting category-I university funds and university-related endowments FPI that meet specific criteria from enhanced disclosure requirements.

Additionally, it proposed exempting funds with concentrated holdings in entities without a promoter group, where there is no risk of breaching Minimum Public Shareholding (MPS) requirements, from enhanced reporting obligations.

The Securities and Exchange Board of India (Sebi) has sought comments till March 8 from the public on the proposals. This came after Sebi, in August last year, mandated FPIs to disclose detailed information about entities holding any ownership, economic interest, or control in them, without any threshold.

This granular disclosure framework required for FPIs meeting either of the following criteria-- FPIs holding over 50 per cent of their Indian equity Assets Under Management (AUM) in a single Indian corporate group or individually, or along with their investor group, holding more than Rs25,000 crore of equity AUM in the Indian markets.

However, certain FPIs, including those having a broad-based, pooled structure with a widespread investor base or those having ownership interest by the government were exempted from such enhanced disclosure requirements, subject to certain conditions.