SEBI doubles FDI disclosure limit to Rs 50000 crore, investment advisors get these reliefs
New Delhi| The Securities and Exchange Board of India (SEBI) has announced several important decisions after its board meeting on March 24 in Mumbai. This was the first meeting of SEBI’s board chaired by new chairman Tuhin Kant Pandey. New SEBI chairman Tuhin Kant Pandey has approved raising the threshold for detailed disclosures by foreign portfolio investors (FPIs) from the current Rs 25,000 crore to Rs 50,000 crore under his chairmanship. The press release issued by SEBI said that these disclosures are to ensure compliance with PMLR regulations. SEBI has relaxed the norms for advance fee collection for research analysts (RAs) and investment advisors and allowed both the registered entities to collect advance fees for one year.
SEBI’s eye on equity market
The volume of business in the cash equity market has more than doubled between FY 2022-23 (when the cap was set) and current FY 2024-25, the release issued by SEBI said. In view of this, the Board has approved a proposal to increase the applicable limit from the current Rs 25,000 crore to Rs 50,000 crore. FPIs holding more than Rs 50,000 crore equity AUM in Indian markets will now require additional disclosures as written in the circular dated 24 August 2023. According to FPI disclosure norms introduced in August 2023, FPIs with assets (AUCs) of more than Rs 25,000 crore or keeping more than 50 per cent of AUCs concentrated in the same corporate group must provide additional ownership details. Doubling the limit will help in reducing the compliance burden and will also maintain transparency.
The SEBI Board has decided to constitute a High Level Committee (HLC) to review these provisions and make recommendations to improve the existing structure. The HLC shall consist of eminent persons and experts with relevant background and experience. The names of HLC members will be announced in due course. The HLC aims to conduct a comprehensive review and make recommendations to improve the existing framework for managing conflicts of interest, disclosure and related matters, so as to ensure transparency, accountability and ethical conduct of board members and officials, SEBI said in a release. High standards can be ensured. The HLC is expected to submit its recommendations within three months from the date of its formation, which will be placed before the Board for consideration. Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said that the rules for foreign portfolio investors (FPIs) had been changed earlier in 2019.
