Several foreign portfolio investors (FPIs) are maneuvering to sidestep the freshly imposed regulations by the Securities and Exchange Board of India (Sebi), which mandate a full disclosure of the true ownership behind their investments. This pressing deadline looms large, set for the upcoming Monday.
Two Mauritius-based entities, LTS Investment Fund and Lotus Global Investment, are grappling with these new requirements. These funds have made an urgent appeal to the Securities Appellate Tribunal (SAT), seeking an extension to comply with Sebi’s demands.
Also, these investors surfaced in a scathing report on the Adani Group by Hindenburg Research, a US-based investigative firm, back in January 2023.
Their petition urges SAT to instruct Sebi to prolong the compliance deadline. According to Sebi’s current stipulations, FPIs have until September 9 to either lay bare the intricate details of their ownership or to liquidate any excess holdings that contravene the newly instituted rules.
The market was abuzz on Friday with whispers that certain foreign funds were hastily offloading their assets, eager to beat the Monday cut-off. This rush underscores the tension and the high stakes involved as the clock ticks down on these crucial regulatory requirements.
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