SEBI plans to ease disclosure rules for high-risk offshore funds
The regulator is considering wider exemptions and relaxed disclosure norms to encourage long-term foreign investment and reduce compliance burdens for offshore funds.
India's market regulator, SEBI, is set to revise disclosure rules for high-risk offshore funds, according to three sources familiar with the matter. The proposed changes aim to ease the burden on thematic funds and attract long-term foreign capital, as foreign portfolio investors have recently sold a record amount in India. The category of "high risk" encompasses funds that hold over 50% of their Indian assets in a single group of companies.
SEBI is considering three proposals, including exempting recently formed funds from disclosure requirements, raising the threshold for investor reporting, and broadening the eligible countries and regulators for exemptions. SEBI is expected to present its recommendations to a panel for further review. Two offshore funds, Generation Investment Management and Thai Union Group PCL, have challenged SEBI's regulations in court, citing difficulties in complying with the new rules.
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