SEBI Doubles FPI Disclosure Limit | 28 Mar 2025

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.