The Securities and Exchange Board of India (SEBI) has put forth proposals on Wednesday regarding the disposal of securities held by offshore funds whose Indian licenses have expired, as outlined in a discussion paper published on the regulator’s website. This preliminary step precedes any potential amendments to SEBI’s regulations concerning market entities.
Previously, there has been no established mechanism for offshore funds to liquidate their holdings following the expiration of their licenses. SEBI disclosed that there are currently 55 offshore funds in this situation, collectively holding securities valued at 3.3 billion Indian rupees ($39.77 million).
SEBI has also introduced a separate proposal suggesting that offshore funds should be obligated to report any significant changes, such as alterations in fund structure, ownership, or control, within a timeframe of 30 days. This requirement represents an extension from the current regulation, which mandates reporting within seven working days.
