SEBI eases FPI settlement norms, reduces minimum investment in SIF

The Securities and Exchange Board of India (SEBI) announced several measures to improve ease of doing business and enhance market participation. These include allowing Foreign Portfolio Investors (FPIs) to net settle their intraday cash market transactions, effective December 31, 2026, which aims to reduce liquidity pressure and funding costs. Currently, FPIs settle transactions on a gross basis, incurring additional costs. SEBI clarified that non-outright transactions will still be settled gross to prevent market manipulation.

Furthermore, SEBI reduced the minimum investment value for individual investors in Social Impact Funds (SIF) under AIF Regulations 2012, encouraging greater retail participation. The regulator also approved amendments to AIF Regulations allowing schemes to retain liquidation proceeds post-tenure and introducing a framework for tagging 'inoperative funds' with reduced compliance requirements.

Additional measures included permitting Infrastructure Investment Trusts (InvITs) to hold investments in Special Purpose Vehicles (SPVs) even after concession agreements conclude and allowing InvITs and Real Estate Investment Trusts (REITs) to invest in liquid mutual fund schemes with a credit risk value of at least 10, providing more investment options and mitigating concentration risk.

(Source：Zee News)