SEBI extends deadline for offshore funds' investor data disclosure

The Securities and Exchange Board of India (SEBI) has provided offshore funds with an additional seven-month grace period to liquidate their holdings in the event of failure to disclose investor data by January 29, sources familiar with the matter told news agency Reuters.

Sources, who opted to remain anonymous due to lack of authorisation to speak with the media, clarified that there is no immediate deadline or mandatory liquidation for offshore funds, offering a certain flexibility amid regulatory requirements.

SEBI had previously instructed offshore funds, particularly those with over 50 per cent of their assets under management (AUM) concentrated in a single group of companies and with investments exceeding Rs 25,000 crore in equity markets, to disclose details about their investors.

The funds, subject to this disclosure mandate, are granted an additional 10-30 days post the January 29 deadline to furnish the required investor data. However, if they still fail to comply, they are given a further six months to initiate the reduction of their holdings.

The move by SEBI reflects a balanced approach, allowing funds a reasonable timeframe to meet regulatory obligations while providing an extended period for corrective measures in case of non-compliance. It underlines the regulator's focus on fostering transparency in the financial markets without precipitating abrupt market movements.

(With Reuters inputs)