The Indian capital markets regulator has hardened the conditions under which foreign portfolio investors (FPIs) with outsized exposures would be spared from making full disclosure of the investors in the fund.
This was communicated by the Securities & Exchange Board of India (Sebi) to custodians of offshore funds, two persons aware of the regulatory changes told ET. Custodians are banks and non-bank institutions holding cash and securities on behalf of FPIs.
ODIs, often loosely called participatory notes, are issued by FPIs (against underlying securities in India) to offshore investors who bet on Indian stocks without registering themselves with the Securities & Exchange Board of India (SEBI).
India s markets regulator has exempted select global funds from tighter disclosures for offshore funds investing in the country with a large share of investments in one company..