- SEBI explores regulatory oversight for family offices in India
- New rules may mandate disclosure of assets and structures
- Proposal aligns with global practices in Singapore, Hong Kong
New Delhi: The Securities and Exchange Board of India (SEBI) has reportedly begun discussions on bringing family offices — private investment arms of wealthy families — under its regulatory supervision, according to a Bloomberg report.
What SEBI is considering
Regulatory officials are examining proposals that may require family offices to disclose details of their legal structures, assets, and investment returns for the first time. Additionally, SEBI is exploring the creation of a distinct regulatory category to enhance oversight. The regulator believes more transparency is essential to assess how large conglomerates deploy capital into listed securities and the risks involved.
Background consultations
Earlier this year, SEBI consulted several major family offices and sought written submissions from others. However, the timing and final structure of any new rules remain uncertain, as India currently lacks a dedicated regulatory framework for family offices.
Rise of family offices in India
Over the past two decades, family offices have become significant players in India’s financial ecosystem. Initially rare, they now act as startup financiers, private equity backers, and IPO participants. Their investments are often channeled through Alternative Investment Funds (AIFs) or informal shadow-lending structures.
Globally, jurisdictions like Singapore and Hong Kong regulate family offices with defined thresholds and licensing norms. In India, by contrast, a family office’s capital may span multiple individuals, companies, or branches within a family, making oversight more complex.
Quick Take: SEBI’s proposed initiative aims to bring greater transparency, reduce insider trading risks, and align India’s framework with international best practices, especially those in Singapore and Hong Kong.
Source: Bloomberg report
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