Sebi Proposes Same-Day Net Settlement for Foreign Portfolio Investors to Reduce Costs

The Securities and Exchange Board of India (Sebi) has proposed allowing Foreign Portfolio Investors (FPIs) to net same-day cash market trades, enabling them to settle only the net value of buy and sell transactions. This change aims to reduce funding costs, ease liquidity pressures, and improve operational efficiency, especially during high-volume trading days like index rebalancing. The proposal maintains delivery-based settlement and restricts netting to outright transactions, seeking to attract more foreign investment amid recent equity outflows.