India's market regulator announces new disclosures for select offshore funds

(Reuters) - India's market regulator on Thursday notified select offshore funds fulfilling certain conditions of new enhanced disclosure requirements, according to a circular on the regulator's website.

The Securities and Exchange Board of India (SEBI) said offshore funds that have more than 50% of their assets invested in a single corporate group will need to disclose all its investors to custodian banks, through which funds flow into the country, within 90 days starting from Nov. 1.

The funds will have 10 days to lower their investment to below 50% to avoid the enhanced disclosures.

Additionally offshore funds who hold more than 250 billion rupees ($3.03 billion) in the Indian markets would have to disclose their investors. These funds will have 90 days to bring down the investments to below 250 billion rupees to avoid the disclosures, said SEBI.

Funds owned by the government, sovereign wealth funds, pension funds and public retail funds will be exempt from this requirement.

($1 = 82.5720 Indian rupees)

(Reporting by Jayshree P Upadhyay; Editing by Josie Kao)