Additional disclosure framework for Foreign Portfolio Investors - SEBI Consultation Paper on proposal to improve ease of doing business and issuance of Circular granting exemption from additional disclosure requirements

This alert summarizes a recent consultation paper (CP) released for public comments by the Securities and Exchange Board of India (SEBI) on 30 July 2024. The CP is in furtherance to the Circular issued by SEBI dated 24 August 2023  (August Circular), which outlines a framework for mandating additional granular disclosures by Foreign Portfolio Investors (FPIs) fulfilling certain criteria. 

With the objective of improving the ease of doing business in India for FPIs, the CP seeks comments from public for a proposal to eliminate the requirement of providing additional granular disclosure by certain FPIs that individually or along with their investor group, hold more than INR 250 billion of equity Assets Under Management in the Indian markets. The last date to provide comments is 20 August 2024.

Further, this alert also summarizes a recent Circular  issued by the SEBI on 1 August 2024 granting exemption to University Funds and University related Endowments from providing additional disclosures, subject to compliance with certain conditions. The said exemption is pursuant to a consultation paper released by SEBI for public comments on 27 February 2024 .