10% FPIs non-compliant with beneficial ownership disclosure norms: Sebi

Barring these FPIs from fresh purchases would not have any major impact on investments, say experts

Nearly 10 per cent foreign portfolio investors (FPIs) registered in India have not complied with the disclosure norms, the deadline for which ended on March 21. 

According to a circular by market regulator Securities and Exchange Board of India (Sebi), all the overseas investors had to furnish the details of their end-beneficiaries and sources of funds. Sources say Sebi through their custodians is in the process of imposing restrictions on non-compliant FPIs.

Experts, however, feel the Sebi bar is unlikely to have a huge impact on the market or flows.

“While non-compliant FPIs cannot make any fresh purchase of securities, they can continue