Mumbai, Mar 24 (PTI) Markets regulator Sebi’s board on Monday approved a proposal to double the investment threshold for granular disclosures by foreign portfolio investors (FPIs) to ₹50,000 crore.

This is aimed at addressing the changing market dynamics without altering the concentration criteria, which remain unchanged.

At present, certain FPIs with equity assets under management (AUM) exceeding ₹25,000 crore are required to provide granular details of all their investors or stakeholders on a look-through basis.

“Cash equity markets’ trading volumes have more than doubled between FY 2022-23 and the current FY 2024-25. In light of this, the board approved a proposal to increase the applicable threshold from the present ₹25,000 crore to ₹50,000 crore,” Sebi Chairman Tuhin Kanta Pandey told reporters here.

“Thus, FPIs holding more than ₹50,000 crore in equity AUM in the Indian markets will now be required to make additional disclosures,” he added.

This was the first board meeting under the newly-appointed chairman.

In August 2023, Sebi had directed FPIs, who were holding over 50 per cent of their equity AUM in a single corporate group or with an overall holding in Indian equity markets of more than ₹25,000 crore, to disclose granular details of all entities holding any ownership, economic interest, or exercising control in the FPI.

Certain FPIs, including those having a broad-based, pooled structure with widespread investor base or those having ownership interest by the government or government-related investors have been exempted from such additional disclosure requirements, subject to certain conditions.

The size criteria were specified with a view to guarding against the potential circumvention of Press Note 3 stipulations by FPIs with large Indian equity portfolios, with the potential to disrupt orderly functioning of Indian securities markets by their actions.