SEBI seeks more information on FII ownership

SEBI-FIIThe market regulator Securities and Exchange Board of India (SEBI) has asked foreign institutional investors (FIIs) and sub-accounts to unveil more information about their structure of investment in India. The SEBI has directed this guideline for the foreign investors who have invested in this Indian market before 7th of April this year.

The FIIS which are registered on or before 7th of April this year have been asked by the stock market regulator, SEBI to declare the MCV status. The MCV or the multi class share vehicle is very much like mutual fund investments. The FIIs need to affirm whether they are Multi Class Vehicles or protected cell companies (PCCs) or comes under the segregated portfolio companies (SPCs).

It offers a variety of schemes to its clients with different investment strategies. This will comes under one umbrella asset Management Company. But the regulator is afraid that will not have control over different pools or cells under this umbrella entity. On behalf of FIIs Indian domestic companies can take advantage of such system and can route their money through FIIs. SEBI apprehends that they can be encouraged for illegal investments in the market by such instruments.