Stricter norms for FPIs with high India AUM – Times of India

New Delhi : In a transparency push, Sebi on Thursday mandated additional disclosures from foreign portfolio investors that have concentrated holding in a single company or a group firm. Such FPIs will be required to identify all entities with any ownership, economic interest and control rights. The framework will come into effect from November 1, Sebi said in a circular.
Market players believe that the move has its genesis in the Adani issue where Sebi could not identify the beneficial owners of some foreign investments. FPIs holding more than 50% of their equity assets under management (AUM) in a single corporate group will be required to comply with the norms. FPIs with an overall holding in equities of over Rs 25,000 crore will need to comply with the requirements too.