Sebi’s deadline to disclose BO ends, few FPIs seek legal route
New Delhi: With the deadline to disclose the beneficial owners in FPI to markets watchdog Sebi expiring on Monday, a couple of foreign investors have sought legal avenues to avoid complying with the regulations.
Two Mauritius-based foreign portfolio investors — LTS Investment Fund and Lotus Global Investment — have reportedly approached the Securities Appellate Tribunal (SAT) to seek urgent relief from adhering to Sebi’s new norms for foreign investors.
These two FPIs were named in the January 2023 report on Adani Group by the US-based short-seller Hindenburg Research.
They have asked SAT to direct the Securities and Exchange Board of India (Sebi) to give more time to meet these rules.
Sebi set a deadline of September 9 for non-compliant FPIs that fail to provide detailed ownership disclosures to sell off their excess holdings and correct their violations.
On Friday, there were rumours that some overseas funds were rushing to sell their holdings ahead of Monday’s deadline.
“Even though Sebi’s deadline for disclosure of beneficial owners in FPI holdings ends on Monday, September 9, it is learnt that two FPIs have moved the appellate tribunal SAT seeking time till March 2025 to meet these norms. Therefore, the verdict from SAT is awaited.