FPIs With More Than 50% of Their Indian Equity AUM in a Corporate Group Aren’t Required to Make Add’l. Disclosures | SEBI

Circular No. SEBI/HO/AFD/AFD-POD-2/P/CIR/2024/19; Dated: 20.03.2024

Earlier, SEBI vide circular dated August 24, 2023 mandated additional disclosures for FPIs that fulfil objective criteria. Further, FPIs satisfying the criteria were exempted from additional disclosure requirements, subject to certain conditions.

SEBI has now amended this circular. It states that an FPI with more than 50% of its Indian equity AUM in a corporate group shall not be required to make additional disclosures subject to compliance with certain conditions. The conditions are as follows –

(a) The apex company of such a corporate group has no identified promoter. For this purpose, the list of corporate groups based on the corporate repository published by the Stock Exchanges and their respective apex companies having no identified promoters shall be made public by depositories.

(b) The FPI holds not more than 50% of its Indian equity AUM in the corporate group, after disregarding its holding in the apex company (with no identified promoter).

(c) The composite holdings of all such FPIs (that meet the 50% concentration criteria excluding FPIs which are either exempted or have disclosed) in the apex company is less than 3% of the total equity share capital of the apex company.

Further, custodians and depositories must track the utilisation of this 3% limit for apex companies, without an identified promoter, at the end of each day. When the 3% limit is met or breached, depositories are required to make this information public before the start of trading on the next day. The circular shall be effective immediately.

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