Stricter disclosure regime: FPIs to get breather for passive breaches

10 days for single group exposure, 3 months for exceeding Rs. 25,000-cr cap to bring down holdings below thresholds


Samie Modak Mumbai

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Foreign portfolio investors (FPIs) are likely to get a reprieve from the Securities and Exchange Board of India (Sebi) in case of a passive or unintended breach of the thresholds that trigger additional disclosure norms.
According to sources, FPIs whose single group exposure exceeds 50 per cent of their corpus will get 10 trading days to bring down their exposure below the prescribed level, without triggering the stricter disclosure norms. If total equity exposure of an overseas fund exceeds ~25,000 crore and it doesn’t wish to provide additional disclosures, it will have three months to pare its exposure.
A passive breach happens because of events that are beyond the control of a money manager. For instance, if an FPI has

First Published: Jul 11 2023 | 7:35 PM IST

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