Instant Settlement: SEBI gave relief to FPI, this new update on instant settlement

Instant Settlement: SEBI gave relief to FPI, this new update on instant settlement

Market regulator SEBI has given relief to foreign portfolio investors. Such FPIs are now exempted from the additional requirement of disclosure, whose Indian exposure is more than 50 per cent in a single corporate group. Apart from this, SEBI also took an important decision on instant settlement.

Promoting ease of doing business

A day earlier on Friday, a meeting of the board of market regulator SEBI was held. The Board of Securities and Exchange Board of India (SEBI) considered and approved the proposal to exempt certain FPIs from additional disclosure requirements. This step of SEBI is being considered important towards improving the ease of doing business in India.

Such FPIs will get exemption

SEBI has given exemption to some foreign portfolio investors in addition to the disclosure. A consultation paper was released last month regarding exemption from the provisions. Through paper, SEBI had invited comments from various parties regarding this exemption. This exemption is for those FPIs whose Indian investment is more than 50 percent in a single corporate group. Along with this, the total stake of all FPIs in the most prominent company of the group should be less than 3 percent of the total equity share.

This experiment will start from March 28

With this, SEBI The board also took a decision on a proposal related to instant settlement. A proposal was placed before the Board regarding the beta version of Alternative Instant Settlement i.e. T+0 Settlement, which was approved by the Board. There was a proposal to try instant settlement only for 25 shares. This will be tried with some selected brokers now. It will start from March 28.

Review will be done twice

After the launch of the beta version, SEBI will consult with various parties. Feedback will also be taken from users of alternative instant settlement. SEBI's board will continuously monitor the beta version of instant settlement. Currently, the first review will take place three months after the launch of the beta version, while the second review will take place after 6 months. After both reviews, it will be decided what will be the final decision on instant settlement.

Also read: Effect of SEBI's bubble warning, billions of dollars of small-mid cap investors lost

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