The Securities and Exchange Board of India (SEBI) has proposed a netting mechanism for Foreign Portfolio Investors (FPIs) in the Indian cash market. Under this proposal, FPIs would be allowed to offset same-day buy and sell trades across multiple stocks, settling only the net cash obligation instead of paying for each trade separately.
The move aims to reduce liquidity requirements, lower transaction costs, and improve efficiency for foreign investors. Currently, FPIs must settle each transaction individually, which increases funding burdens and operational costs.
SEBI has invited public comments on the proposal, and after considering feedback, may finalize the mechanism. Single-stock intraday trades will continue under the existing gross settlement process.
Securities and Exchange Board of India (SEBI) ne Foreign Portfolio Investors (FPIs) ke liye netting mechanism propose kiya hai. Is proposal ke under, FPIs ko same-day buy aur sell trades ko offset karne ki suvidha milegi aur sirf net cash obligation hi settle karna hoga, har trade alag se pay karne ki zarurat nahi hogi.
Iska main aim hai liquidity requirement kam karna, transaction cost reduce karna aur efficiency improve karna for foreign investors. Abhi tak FPIs ko har transaction alag se settle karna padta hai, jo funding aur operational cost badhata hai.
SEBI ne public comments mangi hain aur feedback consider karne ke baad yeh mechanism finalize ho sakta hai. Single-stock intraday trades ab bhi existing gross settlement ke under hi rahenge.