SEBI Relief for Foreign Investors, Approves Instant Settlement Trial

OM Prakash
3 Min Read
SEBI

Market regulator SEBI has given relief to foreign portfolio investors. Such FPIs are now exempted from the additional disclosure requirement, whose Indian exposure is more than 50 per cent in a single corporate group. Apart from this, SEBI also took an important decision on instant settlement.

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Promote Ease Of Doing Business

A day before, on Friday, a meeting of the Board of Market Regulators (SEBI) was held. The Securities and Exchange Board of India (SEBI) considered and approved the proposal to exempt certain FPIs from additional disclosure requirements. This step of SEBI is considered important to improving the ease of doing business in India.

Such FPI Will Get an Exemption

SEBI released a consultation paper last month on exempting some foreign portfolio investors from additional disclosure provisions. Through the paper, SEBI invited comments from various parties regarding this exemption. This exemption is for those FPIs whose Indian investment is more than 50 per cent in a single corporate group.

Along with this, the total stake of all FPIs in the most prominent company of the group should be less than 3 per cent of the total equity share.

This Experiment Will Start From March 28

Along with this, the SEBI Board also decided on a proposal related to instant settlement. A proposal was made before the Board regarding the beta version of Alternative Instant Settlement, i.e., T+0 Settlement, which the Board approved. There was a proposal to try instant settlement only for 25 shares. This will be tried with some selected brokers now. It will start from March 28.

Review Will Ve Done Twice

After the launch of the beta version, SEBI will consult with various parties. Feedback will also be taken from users of alternative instant settlement. SEBI’s Board will continuously monitor the beta version of instant settlement. The first review will take place three months after the launch of the beta version, while the second review will take place after 6 months. After both reviews, the final decision on instant settlement will be decided.

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By OM Prakash Journalist and Developer
OM Prakash is responsible for maintaining and improving News Waker's website. He ensures the site is user-friendly, accessible, and up-to-date with the latest web technologies.