Two Mauritius FPIs move SAT to seek relief from liquidating Indian portfolio
Lotus Global Investments and LTS Investment Fund, have moved the Securities Appellate Tribunal (SAT) seeking relief from compliance with the September 8 deadline, to liquidate their Indian listed securities portfolio, beyond the specified thresholds set by the Securities Exchange Board of India (Sebi).
Both these funds were linked to the Adani Group in the January 2023 Hindenburg report. These funds have sought time till March 31, 2025, to comply with Sebi's new foreign portfolio investors (FPI) concentration norms to unwind their portfolios.
The matter is likely to come up for hearing next week.
LTS Investment Fund said its total global assets under management (AUM) was about $4 billion as of March 31, 2024 with the Indian investments being less than 25% of the global AUM. While Lotus Global Investments said its global AUM was about $900 million as of March 31, 2024, with the Indian investments being less than 25% of the global AUM.
Both these funds are in breach of the new rule which requires FPIs to not hold more than 50% of their investments in a single Indian corporate group.
Emails sent to both these funds didn't elicit any response till press time.
Last year in August, Sebi said FPIs holding more than 50% of their Indian equity assets under management in a single Indian corporate group and those having more than ₹25,000 crore of equity assets under management in Indian stocks are required to provide granular details of all entities with any ownership, economic interest, or control rights in the fund or
