SEBI Consultation paper on proposals to improve ease of doing business with respect to the additional disclosure framework for FPIs
The Securities Exchange Board of India or SEBI has come up with a consultation paper on proposals to improve ease of doing business with respect to the additional disclosure framework for Foreign Portfolio Investors (FPIs). The first proposal is to exempt Category I University Funds and University related Endowments FPI that meet certain objective criteria from the requirement of enhanced disclosures. The second proposal is to exempt enhanced reporting requirements for some funds with concentrated holdings in entities with no identified promoter group, where there is no risk of breach of Minimum Public Shareholding (MPS). SEBI has called public comments on the proposal to keep the companies with no identified promoter and low holdings of identified FPIs, outside the scope of the granular disclosure framework. It has also asked the public if it agrees with the proposal to keep the threshold at 3% for holdings by identified FPIs in such companies.
SEBI has recommended to exempt university funds and university-related endowments, registered as category I FPI from the disclosure requirements, subject to certain conditions. This condition included the university should be listed in the top 200 ranking as per the latest available QS World University Rankings, such funds' India equity AUM should be less than 25 per cent of its global AUM, its global AUM should not be over Rs 10,000 crore and should have filed appropriate return to the respective tax authorities in their home jurisdiction to evidence that the entity is in the nature of a non-profit organisation and is exempt from tax. Public comments may be submitted by March 08, 2024.
