SEBI (Securities and Exchange Board of India) recently introduced new rules specifically targeting certain Foreign Portfolio Investors (FPIs). However, the Congress claim that these rules indicate a confession of wrongdoing by SEBI towards certain FPIs is misleading. Here are the key points regarding the recent rules:

• SEBI has tightened the regulations for FPIs from countries that do not comply with the Financial Action Task Force (FATF) guidelines.
• The new rules categorize FPIs into two categories: Category-I and Category-II. FPIs from countries in the non-compliant list will fall under the Category-II.
• FPIs falling under Category-II have to follow additional due diligence processes, providing additional documentation and disclosures.
• The rules also mandate Category-II FPIs to undergo a review of their beneficial ownership every six months.
• This step aims to prevent any misuse of FPI route by entities with dubious or questionable backgrounds.
• SEBI's decision to tighten regulations aligns with international standards and aims to enhance the transparency and integrity of the Indian markets.
• This is not an indication of SEBI's wrongdoing but rather a rigorous effort to ensure compliance and safeguard the Indian financial markets.

In summary, the introduction of new rules by SEBI pertaining to certain FPIs is aimed at aligning with international guidelines and enhancing market integrity, rather than a confession of wrongdoing.