Sebi exempts offshore funds from naming their investors but here's the catch

Sebi has exempted offshore funds from naming their investors with riders, partly easing the disclosure rules it put in place last year.

Any offshore funds with more than 50% of its assets in a group of companies will not have to disclose its investors if the apex company in that group does not have a large shareholder or promoter, Sebi said in a circular.

Promoter is a term for large shareholders who can influence company policy.

Last year, Sebi had asked offshore funds with 50% of their assets in a single group of companies and with more than $3 billion in Indian equity markets to disclose their investors.

In making the exemption, Sebi said the stock exchanges will have to identify the companies with no large shareholder or promoter.

However, the regulator said such offshore funds will still need to make required disclosures within 10 days if they hold more than 3% of the company.