Sebi Eases Disclosure Timelines for Foreign Portfolio Investors

The Securities and Exchange Board of India (Sebi) has relaxed the timelines for Foreign Portfolio Investors (FPIs) to disclose material changes. The regulator classified changes into two types, requiring different reporting timelines and supporting documents. Designated Depository Participants (DDPs) must examine all changes and ensure compliance.

The Securities and Exchange Board of India (Sebi) on Wednesday announced a relaxation in the timelines required for Foreign Portfolio Investors (FPIs) to disclose material changes. The newly issued circular categorizes these changes into two distinct groups.

Type I changes include those necessitating new registration or affecting existing privileges and exemptions. FPIs must report these changes within seven working days and submit supporting documents within 30 days. Type II changes encompass all other material adjustments, requiring notification and documentation within 30 days.

Currently, FPIs have up to seven working days to inform Sebi of any structural, ownership, control, or investor group alterations. Designated Depository Participants (DDPs) are responsible for examining these changes and reassessing FPI eligibility. Any delay in notification will compel the DDPs to inform Sebi within two working days, along with reasons for the delay.

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