The SEBI's new rules for some FPIs (Foreign Portfolio Investors) have several economic implications: 1. Enhanced transparency: The rules require FPIs to disclose their ultimate beneficiaries, leading to increased transparency and accountability in the investment process. 2. Curbing illicit activities: By mandating beneficiary disclosures, the rules aim to tackle money laundering, round-tripping of funds, and other illicit activities, which can have negative economic consequences. 3. Strengthening investor confidence: Increased transparency can attract more investors, especially institutional investors, who prioritize compliance and good governance. This can boost overall market confidence and potentially lead to more investments. 4. Potential decline in FPI inflows: Some critics argue that the rules may deter certain FPIs, particularly those who value privacy and anonymity, leading to a reduction in FPI inflows. This, in turn, could impact market liquidity and capital inflows. 5. Adherence to global standards: SEBI's move aligns with global best practices, as many countries already have similar regulations in place. This can enhance India's reputation as a responsible investment destination. While the Congress party's claim of SEBI's new rules being an admission of guilt is debatable, these regulations aim to improve the integrity and stability of India's financial markets, which can have positive long-term economic effects.