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SEBI's September 3, 2026 consultation paper proposes allowing mutual fund schemes to net fund obligations for outright buy/sell trades in the cash market, mirroring the FPI framework, while keeping securities settlement on a gross, delivery-backed basis. Comments are due by September 24, 2026.
4 September 202615 min
SEBI allowed net settlement of funds for FPIs in cash market for outright transactions only. FPIs now pay/receive only net fund obligation instead of gross settlement, reducing funding costs, liquidity pressure, forex slippage, and improving operational efficiency.
Source Name: SEBI Circular – Framework for Net Settlement of Funds for Transactions Done by Foreign Portfolio Investors (FPIs) in Cash Market
26 April 2026Eff. 31 December 20264 min