SEBI WEIGHS NET SETTLEMENT OF SINGLE-DAY FPI TRADES

Portfolios deliver XIRR of 9.3%; FPI AUC stands at $876 bn

- Palazhi Ashok Kumar

The Securities and Exchange Board of India (SEBI) is considering allowing net settlement of single-day trades by foreign portfolio investors in a move aimed at improving operational efficiency and lowering transaction costs, chairman Tuhin Kanta Pandey said on Wednesday.

"Even as domestic participation rises, foreign investors remain central to our markets. Foreign investors and India I have shared a symbiotic relationship-since India opened to FPIs in 1992, portfolio flows have delivered an XIRR of 9.3%. Total FPI assets under custody stand at $876 billion as at endSeptember 2025, and FPIs today hold around 17% of the equity in listed companies," Pandey noted.

"At present, FPIs must give and take delivery for every trade. We are examining whether netting settlements for trades executed on a single day may be permitted. This would provide greater operational convenience and reduce costs," he added.