SEBI needs to double the extra disclosure restrict for FPIs – INA NEWS

Market regulator SEBI has proposed to double the extra disclosure restrict for international portfolio buyers (FPIs). At the moment, there’s a rule to supply further disclosure for such international portfolio buyers whose fairness property beneath administration (AUM) is greater than Rs 25,000 crore.

In view of the rise in market quantity, SEBI in its session paper launched on January 10 has advised growing the AUM restrict to Rs 50,000 crore. The round issued on this regard states, ‘In view of the rise in market volumes, it’s proposed to extend the restrict for added disclosure from Rs 25,000 crore to Rs 50,000 crore.’

The aim of setting the scale standards was to stop international portfolio buyers (FPIs) from violating the rules of Press Notice 3. There was explicit concern about massive international portfolio buyers, as they’ve the power to trigger disruption in Indian markets. The press notice was issued in 2020, the aim of which was to regulate the cash coming from border nations and it was made essential to get approval from the federal government for direct and oblique investments coming from these nations.

The round states, ‘The potential of disrupting the functioning of the market must be assessed based on the scale of the market. On this regard, a broad market parameter – turnover – can be utilized to estimate the market dimension. The information of common day by day turnover (capital market section of NSE) for FY 2022-23 and FY 2024-25 (until December 2024) exhibits a rise of 122%.