Sebi's tough norms for FPIs: Mandatory to disclose any material changes

Capital markets regulator Sebi has made stringent norms for Foreign Portfolio Investors (FPIs), asking them to disclose any material change in their structure and common ownership within seven working days.

With regard to new FPI registrations, the Securities and Exchange Board of India (Sebi) can ask them for any additional documents which may be required, according to a notification.

Under the new rules, FPIs will inform Sebi and designated depository about any false or misleading information about change in material respect and any change in their structure or control within seven working days in writing.

In addition, FPIs will have to inform in case of any penalty, pending proceedings, findings of investigations for which action may have been taken or is in the process of being taken by an overseas regulator against them within seven days.

"In case of any direct or indirect change in structure or common ownership or control of the foreign portfolio investor or investor group, i