Sebi Proposes Netting of Funds for FPIs in Cash Market to Reduce Funding Costs
Published on: Jan. 16, 2026, 7:13 p.m. | Source: scanx.trade
Sebi has proposed allowing Foreign Portfolio Investors to net funds for same-day cash market trades, moving from the current gross settlement system that requires independent funding for each transaction. The proposal covers outright transactions while excluding intra-day trades in the same securities, aiming to reduce funding costs particularly during index rebalancing days. The regulator has sought public comments until February 6 on this operational change designed to enhance efficiency while maintaining market stability safeguards.
