FPIs: Sebi plans hiking threshold to `50,000 cr for making granular disclosures

New Delhi: Sebi on Friday proposed doubling the threshold amount to Rs 50,000 crore for foreign portfolio investors to make granular disclosures about their investors holding any ownership or economic interest.

At present, certain FPIs with equity assets under management (AUM) exceeding Rs 25,000 crore are required to provide granular details of all their investors or stakeholders on a look-through basis. The norms are aimed at preventing the possible round-tripping by certain promoters using the FPI route.

Data for average daily turnover in the capital market segment at NSE increased 122 per cent to Rs 1,18,757 crore in FY25 (till December 2024) from Rs 53,434 crore in FY23.

“Considering the increase in market turnover, it is proposed to increase the size criteria from the present Rs 25,000 crore to Rs 50,000 crore,” Sebi said in its consultation paper.

The Sebi has sought public comments on the proposal till January 31. In August 2023, Sebi directed FPIs, who were holding over 50 per cent of their equity AUM in a single corporate group or with an overall holding in Indian equity markets of more than Rs 25,000 crore, to disclose granular details of all entities holding any ownership, economic interest, or exercising control in the FPI.