SEBI Proposes Raising Threshold for FPI Disclosures to Rs 50,000 Crore

India’s market regulator, the Securities and Exchange Board of India (SEBI), has proposed increasing the threshold for foreign portfolio investors (FPIs) who need to provide additional disclosures. Currently, FPIs holding more than Rs 25,000 crore in equity assets under management (AUM) in the Indian market are required to submit detailed information about their investors and stakeholders. 

In a consultation paper released on January 10, SEBI suggested doubling this limit to Rs 50,000 crore. The regulator explained that the move considers the significant rise in market volumes since the Rs 25,000 crore threshold was set in August 2023. 

SEBI’s circular issued last year aimed to ensure compliance with Press Note 3, which governs investments to prevent potential circumvention of regulatory rules. FPIs meeting the existing threshold are currently required to disclose granular details of their investor groups on a look-through basis. Raising the limit would align with the growing market size and reduce the regulatory burden on smaller FPIs. 

The proposal is open for public feedback before SEBI finalizes the updated framework.