Sebi eases disclosure norms for certain FPIs, approves T+0 settlement

livemint.com:

MUMBAI : The Securities and Exchange Board of India (Sebi) on Friday approved a slew of proposals, including exempting certain foreign portfolio investors (FPIs) from additional disclosure requirements, launch of beta version of the T+0 settlement, and facilitation of ease of doing business for companies going public. For ease of doing business, the markets regulator in its annual board meeting approved a proposal to exempt additional disclosure requirements for FPIs having more than 50% of their Indian equity assets under management (AUM) in a single corporate group, in case the concentrated holdings of the FPIs are in a listed company with no identified promoter, if certain conditions are met.

A consultation in this regard was floated by Sebi in August 2023. “Such FPI holds not more than 50% of its India equity AUM in the corporate group, after excluding its holding in the parent company with no identified promoter", Sebi said in its 8-page statement.

The regulation has been brought in place especially after the Adani-Hindenburg case last year, in which Sebi was unable to determine the beneficial owners of some foreign portfolio investments in Adani stocks due to the laxity of current regulations in identifying the genuine owners of numerous investments. However, exemption from enhanced disclosures have been provided to FPIs that are sovereign wealth funds (SWFs), listed companies on certain global exchanges, public retail funds, and other regulated pooled investment vehicles with diversified global holdings.

Moreover, the regulator, in line with its announcement made on Monday, has launched the beta version of the T+0 settlement cycle for investors. The T+0 settlement essentially means that the fund and securities for