SEBI Proposes Exemptions to Additional Disclosure Framework for Foreign Portfolio Investors
The Securities and Exchange Board of India (SEBI) has put forward two proposed exemptions to the additional disclosure framework for foreign portfolio investors (FPIs).
- This move aims to ease regulatory compliance burden on FPIs and encourage foreign investments in the Indian capital markets.
The proposed exemptions include
- allowing FPIs to avoid disclosing the total number of voting rights held in listed Indian companies on a quarterly basis,
- as well as exempting them from providing a consolidated statement of their offshore funds that invest in India.
Currently, FPIs are required to make these disclosures as part of SEBI’s regulations pertaining to FPIs. However, SEBI believes these requirements may be burdensome and increase compliance costs for FPIs without significant benefits in terms of risk assessment or monitoring.
The proposed exemptions are part of SEBI’s ongoing efforts to streamline regulations and make them more investor-friendly.
SEBI believes that reducing the disclosure burden will attract more foreign investments, enhance market liquidity, and facilitate ease of doing business in India.
These proposals are open for public comments until a specified date, following which SEBI will evaluate the feedback and finalize the amendments to the regulations.
In summary, SEBI has proposed two exemptions to the additional disclosure framework for foreign portfolio investors, aiming to reduce compliance burdens and attract more foreign investments in the Indian capital markets.
