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SEBI Board Meet: Netting of Funds for FPIs Proposed

23 March 20261 min read
BANKING & FINANCESEBI Board Meet:Netting of Fundsfor FPIs Proposed23 March 2026safalsetu.com

Why in the news

SEBI’s board meeting agenda covered wide reforms, with easier fund settlement for Foreign Portfolio Investors (FPIs) a major item.

Gross versus net settlement

FeatureNow: grossProposed: net
Same-day buy and sellEach trade settled individually: pay for buys, receive for sellsPay or receive only the difference

Example

  • Buy ₹100 crore, sell ₹80 crore: today pays ₹100 crore; under netting pays ₹20 crore.

Exam angle

  • Concept: netting of funds for FPIs.

Test yourself

1. What reform for FPIs was SEBI to consider at its March 2026 board meeting?

SEBI was considering netting of funds, i.e. net settlement.

2. Under the current gross settlement system, how must FPIs settle trades?

FPIs settle every trade individually, even for same-day buys and sells.

3. An FPI buys ₹100 crore and sells ₹80 crore of shares on one day. What would it pay under netting?

Under the proposed net settlement only the ₹20 crore difference is payable.

This topic is part of Daily Current Affairs 23 March 2026 (13 topics).

All topics of the dayDay quizMarch 2026

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