SEBI, the Securities and Exchange Board of India, proposed new rules for certain categories of Foreign Portfolio Investors (FPIs) in September 2019. These measures include: 1. Classifying FPIs into two categories: Category I, which includes government and government-related entities, and Category II, which includes regulated entities such as banks, insurers, and retirement funds. 2. Introducing stricter eligibility norms for Category II FPIs, such as requiring them to have at least $700,000 of indirect exposure to India. 3. Implementing a KYC (Know Your Customer) framework for all beneficial owners of FPIs, with significant control criteria for identifying ultimate beneficial owners. 4. Enhancing the disclosure requirements for FPI investments to ensure transparency and prevent money laundering. The Congress party has criticized these measures, stating that they indicate an admission of guilt by SEBI. They argue that these rules are an implicit acknowledgment that the earlier regulations imposed by SEBI were flawed and resulted in money laundering and round-tripping of funds. Overall, SEBI's proposed measures aim to enhance the transparency and integrity of FPI investments in India, while the Congress party perceives them as an admission of regulatory failure.