Sebi's new disclosure rules likely to affect fewer FPIs

Overseas funds effectively have 7 months to comply

- KHUSHBOO TIWARI

Only a fifth of foreign portfolio investors (FPIs) in breach of the market regulator-specified thresholds may need to provide enhanced disclosure on ultimate beneficiaries, thanks to exemptions being provided, according to people in the know.

The ultimate beneficial ownership (UBO) disclosures, for FPIs with over 50 per cent holding in a single corporate group or over ₹25,000 crore exposure to Indian assets, will be required from February 1. But, depending on their category, FPIS will have 10-30 working days to submit these granular details. FPIS affected by this will have a further six months, after the 30-day window, to exit holdings or rebalance their portfolio.

In effect, overseas funds will have seven months to comply with the new disclosure norms.