Rapid Fire
SEBI Doubles FPI Disclosure Limit
- 28 Mar 2025
- 2 min read
Securities and Exchange Board of India (SEBI) has increased the disclosure threshold for Foreign Portfolio Investors (FPIs) from ₹25,000 crore to ₹50,000 crore. Thus, FPIs exceeding this limit must now reveal beneficial ownership and other key investment details.
Rise in Granular Threshold for FPIs:
- Objective: To align regulations with market growth as equity trading volumes nearly doubled since FY 2022-23.
- It is also aimed at increasing capital inflows easing compliance for mid-sized and small FPIs, facilitating ease of doing business.
- FPIs: are entities that invest in securities and financial assets such as stocks, bonds, mutual funds, and Exchange Traded Funds (ETFs) in foreign markets to diversify their portfolio and earn returns.
- FPIs in India are governed by SEBI under SEBI (Foreign Portfolio Investors) Regulations, 2019.
- SEBI: India's securities market regulator, was established in 1988 and gained statutory status in 1992 under the SEBI Act, 1992.
- It oversees stock exchanges, market intermediaries, and investor protection, ensuring market transparency and efficiency.
| Read More: RBI’s Framework for Reclassification of FPI to FDI, Stock Market Regulation |
