SEBI sets December 31 deadline for net settlement of FPI trades

SEBI has allowed net settlement of funds for foreign portfolio investors (FPIs) in the cash market, with December 31 2026, as the deadline. Under revised framework, FPIs will be allowed to net fund obligations for transactions involving either a purchase or a sale in a security within a settlement cycle. This will ease liquidity pressures, lowering transaction costs for FPIs.