Overseas funds set date with Sebi on foreign portfolio investor circular

Watchdog's document on foreign portfolio investors says that the ultimate beneficiary of a fund will be determined by both shareholding and control

Overseas investors plan to meet market regulator Securities and Exchange Board of India (Sebi) this week to seek clarity and highlight lacunae in the recent circular on foreign portfolio investors (FPIs).

In the circular, aimed to curb round-tripping, Sebi said the ultimate beneficiary of a fund will be determined by both shareholding and control. FPIs are currently allowed to invest up to 10 per cent in a listed Indian company. If the new beneficial test is applied, all the funds run by the same manager will be clubbed as they have the same beneficial owner and their combined investments in several