SEBI on May 31, 2023 has issued a Consultation Paper on framework for mandating additional disclosures from Foreign Portfolio Investors (FPIs) to guard against possible circumvention of Minimum Public Shareholding misuse of the FPI route to circumvent the requirements.
The proposal seeks to enhance trust in the Indian securities markets by mandating additional granular disclosures around ownership of, economic interest in, and control of objectively identified high-risk Foreign Portfolio Investors (FPIs) that have either concentrated single group exposures and/ or significant overall holdings in their India equity investment portfolio.
it is proposed that enhanced transparency measures for fully identifying all holders of ownership, economic, and control rights may be mandated for certain objectively identified high-risk FPIs that fulfil certain criteria. Specifically, such identification should be done on a look-through basis down to the level of natural persons, public retail funds, or large listed corporates, without applying any materiality thresholds, and notwithstanding any equivalent PMLA rules or secrecy laws that may be applicable in other jurisdictions of their domicile (including tax havens, if any).
Comments on the proposal may be sent to the following, latest by June 20, 2023:
- Preferably by email to firstname.lastname@example.org,with a copy to Mr. Arpit Anand, Assistant General Manager (email@example.com) and Ms. Chitra M, Manager (firstname.lastname@example.org).
- By post to: ShriVikash Narnoli, Deputy General Manager, Alternative Investment Fund and Foreign Portfolio Investors Department, Securities and Exchange Board of India, SEBI Bhavan, C4-A, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai -400051.