The Securities and Exchange Board of India (SEBI) approved a proposal on Monday to double the asset under management (AUM) threshold for additional disclosure by foreign portfolio investors (FPIs) to ₹50,000 crore. This decision entails increasing the threshold for granular disclosures by FPIs from the current ₹25,000 crore to ₹50,000 crore in the securities market.
Additionally, the SEBI board proposed the formation of a High-Level Committee (HLC) to review provisions related to conflict of interest, disclosure concerning property, investments, liabilities, and other relevant matters concerning board members and officials. The HLC is expected to submit its recommendations within three months, as stated by SEBI chairperson Tuhin Kanta Pandey.
In terms of related developments, SEBI is set to tighten post-listing rules for Small and Medium Enterprises (SMEs) to address governance concerns. These stricter rules will focus on related-party transactions, board disclosures, and filings, with notifications anticipated by April.
Overall, these decisions mark significant moves by SEBI to enhance transparency and governance in the securities market, ensuring the protection of investor interests and market integrity.
Published on March 24, 2025.
