India regulator proposes net settlement for foreign investors to boost market efficiency
India's market regulator proposed a net settlement system for foreign investors. This reform aims to lower costs and attract capital amid rising outflows.
Insights:
The Securities and Exchange Board of India has proposed a regulatory reform that would allow large foreign investors to settle only the net value of their trades across multiple securities instead of settling each transaction individually. This proposal was announced on January 16, 2026, by SEBI chairman tuhin kanta pandey during an industry event. Currently, foreign investors in 
IN must settle each transaction individually, a process that leads to higher funding requirements and operational complexities.
IN must settle each transaction individually, a process that leads to higher funding requirements and operational complexities.
