SEBI doubles FPI disclosure limit, panel to review conflict of interest

Markets regulator Securities and Exchange Board of India (SEBI) on Monday approved a proposal to double the investment threshold for granular disclosures by foreign portfolio investors (FPIs) to 50,000 crore rupees. This is aimed at addressing the changing market dynamics without altering the concentration criteria, which remain unchanged. After the first board meeting, newly appointed chairman Tuhin Kanta Pandey said that, thus, FPIs holding more than 50,000 crore rupees in equity AUM in the Indian markets will now be required to make additional disclosures. SEBI has also decided to boost investor awareness amid recent market volatility. It aims to ensure investors receive proper advice and are not misled by unregistered advisors. SEBI Chairman stated that action has been taken against over 17,000 financial influencers with the help of Google and Meta. SEBI’s board has decided to constitute a High-Level Committee (HLC) to undertake a comprehensive review of the provisions relating to conflict of interest, disclosure pertaining to property, investment, liabilities, etc. Underlining that he wants people to feel that things are "fine now", and the leadership has "nothing to hide", Pandey pointed to the core aspect of trust. "... there was a certain trust that needs to be built up, you know, so to speak," Pandey told reporters, adding that the decision should not be seen as a tacit admission of wrongdoing in recent past.
Currently, certain FPIs with equity assets under management (AUM) of more than 25,000 crore rupees are needed to give granular details of all their investors or stakeholders on a look-through basis. After this decision, FPIs holding more than 50,000 crore rupees of equity AUM in the Indian markets will now be required to make additional disclosures. The decision came in light of the fact that cash equity market trading volumes have more than doubled between the financial year 2022-23, when these limits were set, and the current fiscal 2024-25.Pandey also promised to look into the long pending NSE IPO.