• UGI USER
  • Jan 29, 2024
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FPI DISCLOSURE NORMS: CONCERNS AND SEBI’S ACTIONS

Why in the News?

  • Sebi extends FPIs deadline by 7 months for added disclosures.

About Disclosure :

  • Aim: Prevent round-tripping by certain promoters using FPI route.
  • Granular details of entities with any ownership, economic interest, or control over FPIs.
  • Economic interest: Returns from FPI investments. Ownership interest: Shares or capital ownership.
  • FPIs holding >50% AUM (Assets Under Management )in a group or >Rs 25,000 crore equity AUM must disclose.

About FPI (Foreign Portfolio Investor)

FPI refers to an investor or investment fund from outside the country that invests in financial assets such as stocks, bonds, or other securities in a foreign market.

About AUM (Assets Under Management)

AUM is the total market value of assets that an investment company or financial institution manages on behalf of investors, including mutual funds, exchange-traded funds (ETFs), and other investment vehicles.