Sebi's FPI norms may jeopardise billions of dollars from offshore funds

Custodians report the holdings of FPIs/investor groups to depositories who monitor the investment limits

The Securities and Exchange Board of India’s (Sebi’s) move to club the investment limit for foreign portfolio investors (FPIs) purchasing Indian shares based on the identity of beneficial owners may jeopardise billions of dollars coming into India from offshore funds. 

Global asset managers such as Fidelity, BlackRock, and Templeton run multiple offshore funds that put their money into Indian equities. All of these funds are likely to identify a single beneficial owner (BO) or a senior managing official (SMO) as BO across all funds, said experts. SMOs are designated BOs merely by virtue of their position and do not have