- Securities Law
- News
- SEBI Circular No.: HO/(1)2026-AFD-POD2/I/10157/2026
- Shweta Verma
April 25, 2026
SEBI Circular No.: HO/(1)2026-AFD-POD2/I/10157/2026
-
1
Views
0
Comments
- Share
Framework for net settlement of funds for transactions done by Foreign Portfolio Investors(FPIs)
The Securities and Exchange Board of India circular introduces a net settlement mechanism for funds for Foreign Portfolio Investors (FPIs) in the cash market to improve efficiency and reduce funding costs. Earlier, FPIs were required to settle all transactions on a gross basis, which increased liquidity and forex-related costs.
Under the revised framework, FPIs can net their payables and receivables for “outright transactions” (i.e., where only buy or only sell occurs in a particular security during a settlement cycle), thereby paying only the net amount. However, transactions involving both buy and sell in the same security (non-outright) will continue to be settled on a gross basis, and securities settlement, STT, and stamp duty remain unchanged. This move aims to ease operational burden while maintaining market safeguards and is to be implemented by December 31, 2026.
Author Bio
Shweta Verma
CS Trainee View Full Profile
Comments
- Relaxation of additional fees and extension of time for filing of Financial Statements and Annual Re
- Review of Foreign Direct Investment (FOi) policy on Insurance Sector
- Companies (Accounting Standards) Amendment Rules, 2026
- Frequently Asked Questions (FAQs) on Liquidation and Voluntary Liquidation Forms
- Frequently Asked Questions (FAQs) on Liquidation Process
Be the first to leave a comment for this Article