Foreign funds with India link face uncertain future over Sebi's diktat

Sebi clarification that NRIs, PIOs cannot be beneficial owners could hit around 150 of these

Several foreign funds face an uncertain future with the Securities and Exchange Board of India’s (Sebi’s) order barring Persons of Indian Origin (PIO) from being the end-beneficiaries. According to sources, close to 150 foreign funds currently registered with Sebi are promoted by PIOs. They now face revocation of licences.

Under the new foreign portfolio investor (FPI) norms, an Indian or Non-Resident Indian (NRI) cannot be a beneficial owner of a foreign fund. The regulator has said funds that do not meet the criteria cannot take any fresh derivative positions after the expiry of the ongoing contracts. Further, if the funds