The stock market watchdog will not force foreign investors that haven't disclosed their ultimate beneficiaries to sell their holdings beginning 1 February, two people aware of the regulator's thinking said, lifting a cloud that has hung heavy over the market in the recent past.
While some categories of foreign portfolio investors (FPIs) will be exempt from the new rule on enhanced disclosures, others will get additional time to comply. The rule will also not cover investments in companies that are widely owned with no clear promoter.
This means there is no 1 February cliff for FPIs that have not complied with Securities and Exchange Board of India's (Sebi) new rules mandating enhanced disclosures.
"FPIs that may be required to provide enhanced disclosures are expected to be significantly less than estimated in the consultation paper and the Sebi board note.
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," said one of the two people cited above.
FPIs that met the criteria for enhanced disclosures as of 31 October 2023 were given time till 31 January 2024 to rebalance their holdings, the people said. If these FPIs continue to meet the criteria for enhanced disclosures as of January end, they will get 10-30 more days to provide more details.
Bu hikaye Mint Mumbai dergisinin January 25, 2024 sayısından alınmıştır.
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Bu hikaye Mint Mumbai dergisinin January 25, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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