The Securities and Exchange Board of India (Sebi) plans to extend granular disclosure norms applicable to foreign portfolio investors (FPIs) to offshore derivative instruments (ODIs), also known as P-notes, sub-funds, and a wider set of portfolios.
In August last year, the market regulator had issued a circular to FPIs mandating disclosures on economic interest and beneficial ownership after it faced challenges in cases like the allegations against the Adani group of violating norms through FPIs.
Sebi had specified thresholds such as over 50 per cent exposure by an FPI in a single corporate group or Rs 25,000 crore equity exposure in India. In a consultation paper floated on Tuesday, Sebi has proposed expanding this disclosure mandate to a wider set of offshore investors and sub-funds.
“The concentration criteria and size criteria shall be applicable directly to ODI subscribers, to be monitored by ODI issuers and their DDPs/depositories,” said Sebi.
As per Sebi data, the total value of ODIs or P-notes as a percentage of the assets under custody (AUC) of FPIs has dropped from 44.4 per cent at the end of FY2007 to 2.1 per cent as of FY24.
First Published: Aug 06 2024 | 9:35 PM IST
