Easing FPI Threshold Can Induce Capital Inflow, Say Experts -

The Securities and Exchange Board of India’s (SEBI) Decision to increase the threshold for FPIS to start making granular disclosures, to ₹ 50,000 Crore, May Increase Capital Inflows AMID Reality Portfolio Investors (FPI) and Ease the Compliance Burden on Genuine Investors, According to Experts.

In Its Q4 Board Meeting on Monday, Sebi Increased FPI Investment Threshold for Granular Disclosures to ₹ 50,000 Crore from the Earlier ₹ 25,000 Crore Crore Citing of Cash Equity Markets in the Past Couple of Yeers. This means Foreign Portfolio Investors, Who Invest More than ₹ 50,000 Crore in Indian Stocks, will have to disclose details of beneficial owners and returns of FPIS AmON OTURS AMON OTHURNS OTHURNS OTHURNS OTUPISME

“We are providing the kind of regulations which will really facilitate it [investment in Indian markets]We are in no way wanting to scare anybody away or things like that, “Sebi Chairperson tuhin kanta pandey said in a media briiefing on monday.

The revised Norms are an amendment to the circular dated August 24, 2023, which bright in additional disclosure norms for fipis to bring in more than ₹ 25,000 Crore INTO INTO INTO INTO INTO INTON MARKETS and Invest More Than Half of his Portfolio in A Single entity.

The 2023 circular waste as a move to prevent entities from flouting public shareholding norms and stock price manipulation using the FPI Route, as Alleged by ShortSeller Hindenburg Againi Group. “It is expected to enhance capital inflows, improve market depth, and ensure great transparency. It simplifies compliance for mid-sized and Small SIZED FPISED FPISED FPIS In Indian Equites, while Reducing The Compliance Burden Significantly, “said Mahavir Lunawat, Chairman of the Association of Investment Bankers of India Services Group.

“Because of the sheer size of their portfolio, they were gotting Caught into the granular disclosure requirement, which is always not a very easy one,” Said Siddhartan Shah, Partner at Khaitan & Co, Mumbai-based law firm.

He further said India probally might have been done the only emerging market where this level of granular data was being sought, making compliances for such funds very digital.

Responding to such a requirement, many fipis may have diluted their positions in India to fall bell bell below the Threshold ₹ 25,000 Crore to Avoid Getting Cauht Into This Level of this Level of Compliance and this in some may maay may may may maay may mae from Factors Contributing to the Sell-off by FPIS in the Indian Market, Mr. Shah added.