FPIs seek legal route to dodge Sebi norms; deadline to disclose BO expires

Some FPIs have sought legal avenue to avoid complying with rules requiring disclosure of ultimate beneficial ownership (BO) to the markets regulator Sebi as the deadline expires on Monday.

Two Mauritius-based foreign portfolio investors -- LTS Investment Fund and Lotus Global Investment -- have reportedly approached the Securities Appellate Tribunal (SAT) to seek urgent relief from adhering to Sebi's new norms for foreign investors.

These two FPIs were named in the January 2023 report on Adani Group by the US-based short-seller Hindenburg Research.

They have asked SAT to direct Securities and Exchange Board of India (Sebi) to give more time to meet these rules.

Sebi set a deadline of September 9 for non-compliant FPIs that fail to provide detailed ownership disclosures to sell off their excess holdings and correct their violations.

On Friday, there were rumours that some overseas funds were rushing to sell their holdings ahead of Monday's deadline.

"Even though Sebi's deadline fo