SEBI Board's Comprehensive Agenda: Easing FPI Norms and Governance Overhaul

The SEBI board is scheduled for a crucial meeting on Monday, deliberating on a diverse agenda encompassing reforms for foreign portfolio investors (FPIs) and market intermediaries. A pivotal discussion will focus on allowing FPIs to net funds for same-day cash market trades, which aims to streamline operational efficiency and cut funding costs.

Currently, FPIs must settle each transaction individually on a gross basis. The proposed netting of funds would enable them to balance proceeds from sales and purchases, thereby meeting only net payable obligations. This change is expected to significantly reduce transaction costs related to timing mismatches in currency flows.

Additionally, the board will review governance proposals, including revising the 'fit and proper person' criteria for market intermediaries, emphasizing procedural clarity, and fairness. The meeting will also consider business ease measures for REITs and InvITs, along with addressing conflict of interest through enhanced transparency for SEBI officials.