India’s markets regulator proposed tightening of disclosure requirements for offshore funds in a consultation paper released on Wednesday. The move is intended to prevent promoters of Indian companies from abusing the FPI route to circumvent minimum public shareholding norms.
The Sebi consultation paper comes days after a Supreme Court-appointed expert committee observed that the regulator is struggling to ascertain the identities of the ultimate beneficiaries in 13 suspected FPIs in Adani Group firms. “It would be a humongous task to figure out who the ultimate beneficial owner is," the expert panel had said in its report.
Sebi observed this tightening may potentially impact FPI holdings of around ₹2.6 trillion worth of assets in India, adding that this constitutes around 6% of total FPI assets under management and less than 1% of India’s total market capitalization.
Sebi has proposed a risk-based classification of funds based on the concentration levels of their portfolios. Funds falling under the high-risk list would need to provide granular details of beneficial ownership, Sebi added.
Market participants can provide feedback on this paper to Sebi by 30 June.
This story is from the June 01, 2023 edition of Mint Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the June 01, 2023 edition of Mint Mumbai.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Think Tesla Is In Trouble? Pity Even More Its Wannabe EV Rivals
The combined market value of six prominent wannabes hit 400bn in 2021, but today they are worth 65bn
Has The Growth Of Our Economy Translated Into Domestic Jobs?
While the covid shock and other setbacks got in the way, data indicates that employment in India is on a firm recovery path
Financial Sector Reforms Plan To Be Unveiled Post Elections
The govt will cut its stake in five PSBs this fiscal to comply with Sebi’s listing guidelines
Generative AI Is Not Ubiquitous In The Business World-Not Yet
While some AI tools racked up users, some firms are proceeding with caution, or not at all
Wipro’s CEO switch was not about its share price
Shareholder value data does not explain the firm's change on top. In a flux-filled field like infotech, business performance counts for more and Wipro's challenge still seems quite steep
How not to blow a major chunk of your travel budget on visas
Rejection of visas can impact your travel costs, especially when you have to cancel flight and hotel bookings
Wheat output at 106 mt to fall short of govt estimate: Survey
This decline in output comes at a time India confronts rising food inflation
Ghosh won't stay on Bandhan Bank board
Board may even look at appointing an interim CEO post his tenure
Biocon leads Indian charge into weight loss drugs as patents lapse
Biocon Ltd. is pivoting to anti-obesity therapies as patents for the blockbuster medications start to expire, unleashing a wave of generic supply for the market that's expected to touch $100 billion by 2030.
Aakash names Deepak Mehrotra as managing director and CEO
Aakash Educational Services Ltd (AESL), a subA sidiary of embattled startup Byju's, has appointed Deepak Mehrotra as its managing director and chief executive officer.
