FPI Selloff Continues Even As Stricter Disclosure Norms To Kick In From Nov. 1
Foreign portfolio investors offloaded stocks worth Rs 1,500.1 crore on Friday.
Overseas investors continued their selling spree in the equities market on Friday, even as the additional disclosure requirements for foreign portfolio investors are set to come into effect on Nov. 1.
Foreign portfolio investors offloaded stocks worth Rs 1,500.1 crore on Friday, while they recorded the biggest single-day equity selloff for the year on Thursday, according to provisional data from the National Stock Exchange.
Domestic investors remained net buyers and mopped up equities worth Rs 313.6 crore, the NSE data showed.
In October, foreign investors have offloaded stocks worth Rs 20,356 crore, according to data from the National Securities Depository Ltd.
Criteria For Additional Disclosure Requirements
The Securities and Exchange Board of India earlier proposed additional disclosure requirements for foreign portfolio investors meeting certain objective criteria.
It includes the following:
FPIs holding more than 50% of their Indian equity assets under management in a single Indian corporate group.
FPIs that, individually or along with their investor group, hold more than Rs 25,000 crore of equity AUM in the Indian markets.
FPIs that meet the criteria will have to provide granular details about entities holding any ownership, economic interest, or exercising control in the FPI on a full-look-through basis up to the level of all natural persons, SEBI said in a circular.
The enhanced disclosures are aimed at addressing possible circumventions of the Minimum Public Shareholding and Takeover Regulations, the market regulator said.
Foreign investors sold stocks worth Rs 14,768 crore in September after buying equities worth Rs 1.69 lakh crore between March and August this year.
Foreign institutions have been net buyers of Rs 1,00,163 lakh crore worth of Indian equities so far in 2023, according to data from the National Securities Depository Ltd., updated till the previous trading day.
The S&P BSE Sensex closed 634.65 points up, or 1.01%, at 63,789.80, while the NSE Nifty 50 ended 190 points, or 1.01%, higher at 19,047.25.
