SEBI to Introduce FPI Netting Framework and Review Closing Auction Mechanism

SEBI plans to introduce a netting framework for foreign portfolio investors (FPIs) to allow offsetting of buy and sell trades within the same day, reducing funding requirements and transaction costs. A consultation paper on this is expected soon. Additionally, SEBI is reviewing reforms to the closing auction mechanism to enhance market transparency and efficiency, with a related circular anticipated shortly. These measures aim to improve operational efficiency and attract institutional capital to Indian markets.