Context:
The Securities and Exchange Board of India (SEBI) is likely to increase the investment threshold for granular ownership disclosures by foreign portfolio investors (FPIs) from ₹25,000 crore to ₹50,000 crore. This strategic move is designed to enhance FPI confidence and align disclosure requirements with India’s growing financial markets.
Key Highlights
- SEBI may also ease regulations for:
- Research analysts and investment advisors regarding advance fee collections.
- Alternative Investment Funds (AIFs), aiming to make the ecosystem more attractive.
Indian Stock Market Continues to Rally
- Domestic equity benchmarks surged for the fourth straight day, supported by positive investor sentiment following the US Federal Reserve’s projection of two rate cuts in 2025.
Foreign Portfolio Investment Inflows at 1-Year High
- FPI debt market inflows reached a 1-year high with ₹3,052 crore invested in a single day, according to NSDL data.
Possible Relief for Startups and Pre-IPO Founders
- SEBI is also considering ESOP regulation relaxations for startup founders ahead of IPOs, aimed at boosting India’s vibrant startup ecosystem.
SEBI’s proactive regulatory measures, including raising FPI disclosure thresholds and easing norms for startups and investment professionals, signal a strong commitment to fostering market growth, encouraging foreign investments, and supporting India’s dynamic financial and startup landscape. These developments are expected to hav
