FILE PHOTO: The logo of Securities and Exchange Board of India (SEBI) is seen on its headquarters in Mumbai, India, March 24, 2025. REUTERS/Hemanshi Kamani/File Photo
| Photo Credit:
HEMANSHI KAMANI
The Securities and Exchange Board of India has proposed permitting netting of funds for transactions done by foreign portfolio investors in cash markets to boost operational efficiency and reduce their cost of funding.
The regulator floated a discussion paper on Friday and sought comments to be submitted by February 6.
Under current regulations, FPIs are required to transact in securities in India only on the basis of taking and giving delivery of securities purchased or sold.
Institutional investors are not allowed to do day trading that is, square-off their transactions intra-day. All transactions are grossed at custodians’ level and investors are required to fulfill their obligations on a gross basis. The custodians, however, settle their deliveries on a net basis with the clearing corporations.
Published on January 16, 2026
