SEBI's crucial board meeting on March 23, a major decision may be taken regarding FIIs.

News Topical, Digital Desk : The stock market is already experiencing volatility, but now the market is expected to receive a new trigger. Several major decisions are expected at the SEBI board meeting on Monday, March 23, 2026, which will play a key role in determining the market's direction. Sources told Moneycontrol that "netting of funds" is being proposed for FPIs (foreign portfolio investors). Currently, under the current rules, if FPIs buy and sell shares on the same day, they have to pay the full amount for both transactions separately. This means gross settlement. However, the proposal is to change this to net settlement.

This change will mean that if FPIs are making money by selling something and are also buying something, their total liability will be adjusted. This will reduce their funding costs and make it easier to execute large transactions. This move could be a significant relief, especially during periods like index rebalancing, when there is heavy buying and selling. Another important issue concerns changes to intermediary regulations. The "fit and proper" rules implemented in November 2021 were quite strict. Under the current rules, even a mere FIR or chargesheet filed against an individual could lead to disqualification and the sale of their shares. Considerations are now underway to soften this rule slightly. It is proposed that strict action be taken only if convicted by a court. Furthermore, the "conflict of interest" rules for SEBI board members and employees may also be reviewed. This was previously discussed, but a decision could not be reached due to objections regarding privacy. Now, it may be brought before the board again. There is also a significant focus on new asset classes like REITs and InvITs. The regulator wants investors' money to be diversified, not just limited to equity or debt. To achieve this, it plans to address the barriers inherent in these platforms. The most interesting proposal relates to social impact funds. Currently, the minimum investment limit is ₹2 lakh, which is proposed to be reduced to ₹1,000. The aim is to make it easier for ordinary investors to invest in social causes. This SEBI meeting could prove to be a game-changer for the market. If these proposals are approved, liquidity could increase, investor confidence could strengthen, and new investment avenues could open up.
 

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