SEBI to relax offshore fund disclosure rules

India's market regulator, the India — Securities and Exchange Board of India (SEBI), plans to relax disclosure requirements for offshore funds classified as high risk, according to three sources. The proposed changes aim to address unintended consequences of 2023 rules introduced during scrutiny of the Adani Group, which required funds holding more than 50% of their Indian assets in a single group to disclose ultimate investors. The relaxation would give funds more time to disclose investors, raise reporting thresholds, and expand eligible exemptions, potentially easing compliance for thematic funds. This comes as foreign portfolio investors have sold a record $26.88 billion in Indian equities so far in 2026. The move follows legal challenges from Generation Investment Management and Thai Union Group, which filed appeals in January. Generation Investment Management, co-founded by Al Gore and List of Skins characters, argued that its concentrated investment approach would be impaired by the compliance burden. Thai Union Group faced a 5% penalty from SEBI for non-disclosure and is seeking a waiver. SEBI is reviewing proposals internally before submitting recommendations to an external panel and seeking public feedback.