SEBI circular HO/(1)2026-AFD-POD2/I/10157/2026 · 24 Apr 2026
Official title
Framework for net settlement of funds for transactions done by Foreign Portfolio Investors (FPIs) in cash market
Summary
Check the official recordSEBI permits net settlement of funds for outright transactions by Foreign Portfolio Investors in the cash market. An outright transaction is a purchase or a sale of a security but not both in a settlement cycle. FPIs net their outright purchase and sale obligations to determine the net fund obligation. Transactions with both purchase and sale of the same security remain on a gross basis. Excess outright sale value does not offset non-outright purchase obligations. Securities settlement between FPI and custodian remains on a gross basis. Securities Transaction Tax and stamp duty remain on a delivery basis. Custodians and FPIs must update their systems to implement these changes by December 31, 2026.
What you must do
Key dates
Who is affected
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