Sebi's separate FPI registration plan draws flak from investors

Each FPI will have to transfer existing assets from its demat account to that of each of its sub-fund

The Securities and Exchange Board of India’s (Sebi’s) recommendations to make it mandatory for sub-funds with segregated portfolios to take separate FPI registrations have invited strong opposition from foreign portfolio investors (FPIs). They fear such a move could compel them to liquidate their holdings, incur huge costs, and potentially disrupt the Indian stock market.

Scores of FPIs who invest for their clients have different sub-funds or share class, each with a different strategy. For example, about 270 Société d'investissement à Capital Variable (SICAV) funds — open-ended collective investment funds domiciled in European jurisdictions like Luxembourg and France — operate with