SEBI Grants Extension: FPIs Get Additional Time for Compliance with Ownership Disclosure Norms

SEBI, the market regulator in India, had initially mandated FPIs with over 50% of their Indian equity AUM in a single group or holding more than Rs 25,000 crore AUM to provide additional ownership disclosures.

Recently, SEBI extended the deadline for offshore funds to liquidate holdings if they fail to disclose investor data by January 29, offering an additional seven months for compliance.

Sources indicate that the number of FPIs needing enhanced disclosures is expected to be significantly less than the estimated Rs. 2.6 lakh crore mentioned in SEBI’s consultation paper.

Notably, there is no immediate deadline or obligation for offshore funds to liquidate their holdings.

SEBI clarified that there is no risk of Minimum Public Shareholding (MPS) violation in concentrated FPI holdings in companies with no identified promoter.

High-risk FPIs with over 50% concentration in a single corporate group are also required to provide additional disclosures.

FPIs now have an extended six-month period beyond the initial deadline to reduce their holdings, ensuring a smoother transition to compliance with SEBI’s ownership norms.