Now, relief from full disclosure won't be easy for pooled FPIs
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Mumbai: The Indian capital markets regulator has hardened the conditions under which foreign portfolio investors (FPIs) with outsized exposures would be spared from making full disclosure of the investors in the fund. This was communicated by the Securities & Exchange Board of India (Sebi) to custodians of offshore funds, two persons aware of the regulatory changes told ET. Custodians are banks and non-bank institutions holding cash and securities on behalf of FPIs. FPIs impacted by the new rules will have to rejig their portfolios by August 20, failing which they would have to sell off their portfolios in the next six months. Driven by US short-seller Hindenburg's allegations against Adani Group, Sebi last year came out with granular disclosure norms. An FPI must reveal the ultimate beneficial ownership of every fund investor, down to the last natural persons, in certain circumstances. Agencies Common Portfolio This is when ove...