FPI net settlement rules a clear positive without adding systemic risk: Finsec Law Advisors

Sandeep Parekh, Managing Partner at Finsec Law Advisors said SEBI’s net settlement mechanism will improve capital efficiency for foreign investors by reducing the need to bring in fresh funds for each transaction. This is especially useful during index rebalancing and high-volume days. He added that the move does not increase systemic risk and is not meant for intraday trading. Parekh also highlighted reforms in SEBI’s code of conduct and fit-and-proper rules as steps toward better transparency and accountability.