00:00Indian Capital Market Regulator SEBI has decided to increase the disclosure threshold for foreign portfolio investors, i.e. FPIs.
00:13Now, more than Rs 50,000 crores, equity assets under management, i.e. AUM FPIs, will have to provide extra information.
00:22While earlier this limit was Rs 25,000 crores, this decision has been taken in the board meeting of SEBI's new chairman, Tuhin Kant Pandey.
00:30Now, if we compare the new rule with the old rule, then we will get more clarity as to what has changed.
00:37So, let's tell you in detail about this change in this video.
00:41First, let's talk about the old rule.
00:43So, according to the old rule, more than Rs 25,000 crores, equity AUM FPIs had to provide detailed information to all their investors.
00:52Now, according to the new rule, only more than Rs 50,000 crores, AUM FPIs will have to provide this disclosure.
01:00In addition, SEBI has said that the trading volume of the cash equity market has now doubled compared to the financial year 2022.
01:08Therefore, the decision to increase the threshold has been taken.
01:11Now, if we look at why SEBI has brought this new rule, then in the circular of 24 August 2023, SEBI had given two conditions to the FPIs.
01:21If a FPI has more than 50% equity AUM in a corporate group, then it will have to provide extra disclosure.
01:29Apart from this, more than Rs 25,000 crores, AUM FPIs will have to provide information to their natural persons.
01:36Actually, its purpose was to ensure the compliance of Minimum Public Shareholding i.e. MPS and Takeover Rules.
01:43So that there is no confusion in the market.
01:45Now, SEBI has clarified that MPS i.e. Minimum Public Shareholding and Takeover Rules will continue as before.
01:54In addition, all FPIs will have to comply with PMLA i.e. Money Laundering Prevention Law.
02:00Now the question is, what will change and what difference will it make to the market by bringing this new rule?
02:06So, with this new rule, big foreign investors i.e. FPIs will get relief.
02:12Actually, small and middle FPIs will not need much disclosure, which will make their work easier.
02:19Apart from this, transparency will increase in the market.
02:22That is, SEBI's goal is to ensure the compliance of investors' privacy and rules while keeping the market stable.
02:28Here, information is given only for information purposes.
02:31It is important to tell that investors in the market are subject to market risks.
02:35Before investing as an investor, always consult the experts.
02:39No one is advised to invest here by GoodReturns.
02:44So, what is your opinion on this news?
02:46Give us your opinion in the comment box and keep watching GoodReturns for such updates.
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02:58Thank you for watching!
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