SEBI raised the threshold for foreign portfolio investors (FPIs) to make detailed disclosures from ₹25,000 crore to ₹50,000 crore.
This change aims to encourage more capital inflows, especially amidst ongoing selling by FPIs.
FPIs investing over ₹50,000 crore will now need to disclose details like beneficial ownership and returns.
The new rule is intended to ease the compliance burden for smaller investors and improve market transparency.
SEBI believes the change will boost investment in Indian markets and enhance market depth.
The decision may help attract more FPIs, especially mid-sized and small investors, by simplifying compliance.
Experts believe the previous granular disclosure requirements might have led some FPIs to reduce their investments to stay below the threshold.
SEBI's decision is seen as a pro-growth move that balances regulatory oversight with making the market more attractive for investors.
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