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Sebi mulls relaxation in timelines for FPIs’ material change disclosures
Capital markets regulator Sebi on Wednesday came out with a proposal to relax timelines for disclosure of material changes by Foreign Portfolio Investors (FPIs).
The regulator also suggested a framework for providing flexibility to FPIs in dealing with their securities after expiry of their registration.
In its consultation paper, Sebi proposed categorising material changes notified by FPIs into two groups to set timelines for reporting such changes.
Type I includes changes that require FPIs to seek fresh registration, or which affect any privileges or exemption available to such foreign investors and Type II includes all other material changes.
The regulator has proposed that FPIs should report Type I changes within seven working days and provide supporting documents within 30 days and Type II changes require notification and supporting documents within 30 days.
At present, FPIs get time up to seven working days to submit information to it with regard to any material change in it