Read on the application
Stricter disclosure rules for foreign institutional investors (FPIs) will come into effect from November 1. According to the new rules of the Securities and Exchange Board of India, foreign investors who have a large stake in the domestic market but are limited to certain groups or stocks, these investors will have to comply with some additional disclosure rules. The picture of our ownership rights has to be clarified.
SEBI gave its approval in June itself. SEBI has taken this step Hindenburg This report comes after the Adani Group suffered a major blow. In June itself, SEBI approved a consultation paper on additional disclosure rules for foreign investors who hold majority of their investments in a single group or share. According to the new rules, such foreign investors will be considered high risk, those who have 50 percent or more of their capital in any single corporate group or their investment in the Indian market exceeds Rs 25 thousand crore.
What will SEBI benefit?
Through this, SEBI will be able to get information about the principal beneficiary behind any single group or equity focused fund or investor. This will enable SEBI to get a true picture of the risks involved in that investment or the objective of the investment. Sebi said total FPIs can have six per cent of equity assets and less than one per cent of domestic equity market value in high-risk foreign institutional investments.