Indian stock market Good news for The board of directors of capital market regulator SEBI on Monday approved a proposal to double the investment limit for foreign portfolio investors (FPI) to Rs 50,000 crore. The purpose of this step is to take care of the dynamics of the market, not changing the shareholding norms that remain unchanged. Currently, it is necessary to give detailed description of all its investors or stakeholders based on the underlying analysis for FPIs with more than Rs 25,000 crore management-up-up asset (AUM). Tuhin Kant Pandey, Chairman of the Securities and Exchange Board of India (SEBI), said that the amount of trading in cash equity markets has increased to more than doubled during the financial year 2022-23 and current financial year (2024-25). Keeping this in mind, the board of directors has approved the proposal to increase the implemented limit from the current Rs 25,000 crore to Rs 50,000 crore.
This was the first meeting of the board of directors
After the meeting of the board of directors, Pandey said that in this way, FPIs with more than Rs 50,000 crore in Indian markets will now need to make additional revelations. This was the first meeting of the Board of Directors led by the newly appointed chairman Pandey. In August 2023, SEBI had directed the FPI, holding a total of more than 50 percent of its equity AUM in a single corporate group or a total share of more than Rs 25,000 crore in Indian equity markets to give detailed description of all the units owned, economic interest or control in FPI. Some FPIs, including an extended investor base-based, pool structure or owned by government or government or government-linked investors, are exempted from such additional disclosure conditions under certain conditions. The FPI size criteria was brought to the purpose of protecting the provisions of Press Note-3 by FPI with large Indian equity portfolio.
Investment advisors permission to charge advance fees
SEBI on Monday decided to allow investment advisors and research analysts to charge an advance fee for one year. Under the current rules, investment advisors (IA) can charge an advance fee for up to two quarters if they consent to the customer. This period was only one quarter for research analysts (RA). SEBI said that the rules related to IA and RA were rationalized earlier to overcome many industry concerns. He has welcomed most changes. The market regulator said that although some provisions related to fees remained concerned, which limit the IA and RA for six months or three months.
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