According to the new regulation, FPIs holding over 50% of their Indian equity AUM in a single Indian corporate group and those having more than Rs 25,000 crore of equity assets under management in Indian stocks are required to provide granular details of all entities with any ownership, economic interest, or control rights in the fund or the entity to Sebi.
While some selling may have been the result of FPIs paring stake to comply with the new regulations, analysts say the big falls over the past few sessions were triggered by stock-specific negative news and overvaluation