SEBI mandates net settlement framework for FPIs in cash market
Why it matters
On April 24, 2026, SEBI introduced a framework for the net settlement of funds for Foreign Portfolio Investors (FPIs) trading in the cash market. This framework allows FPIs to net their fund obligations across transactions, which is expected to reduce the total capital needed for settlement on a given day.
The move is intended to optimize fund settlement processes for institutional investors and enhance the overall efficiency of the Indian securities market. By enabling net settlement, SEBI seeks to reduce settlement risk and transaction costs for FPIs.
| Feature | Details |
|---|---|
| Regulator | Securities and Exchange Board of India (SEBI) |
| Date | April 24, 2026 |
| Investor Type | Foreign Portfolio Investors (FPIs) |
| Market | Cash Market |
| Settlement Type | Net settlement of funds |
Glossary
Net Settlement: A process where the net amount due between parties is calculated and settled, rather than settling each transaction individually.
FPI (Foreign Portfolio Investor): An investor from outside India who invests in Indian securities.