Investments by foreign entities with common owner to be seen as single FPI entry: Sebi

SEBIMumbai : Securities markets regulator Sebi on Tuesday said that investments made by two or more foreign entities with a “a common beneficial” owner will be treated as a single FPI entry.

The regulator said this in a circular “clarification on clubbing of investment limits of foreign government or foreign government related entities”.

“In case, same set of beneficial owners are constituents of two or more FPIs and such investor(s) have a common beneficial ownership of more than 50 per cent in those FPIs, all such FPIs will be treated as forming part of an investor group…,” the circular said.

“… the investment limits of all such entities shall be clubbed at the investment limit as applicable to a single foreign portfolio investor.”

As per the circular, Sebi has “been monitoring investment by foreign governments and their related entities viz foreign central banks, sovereign wealth funds and foreign governmental agencies registered as foreign portfolio investors in India”.

The regulator said that purchase of equity shares of each company by a single FPI or an investor group will be below 10 per cent of the total paid up capital of the company.


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