Revised standards bring in some leeway for FPIs
investors (FPI) betting on India. Among the offshore funds who were put off by the onerous disclosure rules imposed by the Indian capital market regulator, some now have a leeway.
A number of FPIs that are pooled-vehicles from countries like Mauritius, Singapore, and Cayman Islands — though not from the US — will be able to meet the regulatory conditions that would exempt them from the new rules that require funds breaching certain exposure levels to reveal the identities of all its investors down to the last natural persons.
According to a revised standard operating procedure (SOP) finalised by fund custodians, and ratified by the Securities Exchange Board of India (SEBI), on Friday evening, FPIs can report their global assets under management (AUM) — a key information needed to avail the exemption — through 'self-declaration', two persons who have reviewed the new SOP told ET.
Determining Global AUM
This marks a change from the initial SOP which had laid down that the global AUM can be determined only from regulatory filings or from the websites of the fund regulator in the respective country. This was a problem as the data is not available from such filings or website information.
