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SEBI Tightens The Noose To ‘Uncover’ The Beneficiaries Behind FPIs

Sources say that the move comes as a fall out of the Adani impact in the market

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As an aftermath of the Adani issue, the market regulator Securities and Exchange Board of India has decided to set a deadline of September this year for the Foreign Portfolio Investors (FPI) to disclose the Ultimate Beneficial Owners (UBO) of their funds.  

According to reports, SEBI has asked the designated depository participants (DDP), which are the banks that act as a link between the market regulator, FPIsand investors, to update the list of UBOs. 

It may be noted that the identity of the UBOs has been a controversial topic as they prefer to keep themselves anonymous. But with an increase in money laundering cases across the globe, regulators are now forced to bring them out in the open. 

SEBI has threatened the DDPs that their FPI licences would be cancelled if they do not divulge the UBOs, and accordingly their positions would be wound up by March 2024. SEBI has asked all the DDPs to update the details of UBOs of all the FPIs registered in India.

The move comes in the wake of the controversies around Adani Group with respect to their FPI holdings.