India’s markets regulator, Securities and Exchange Board of India (SEBI), is mulling over bringing family offices of billionaires under its oversight. The discussions include asking family offices to disclose their entities, assets, and investments.
Per the discussions, reported Bloomberg, a separate category to regulate the investment vehicles might also be started. India's marketregulator wants to make more visible the way family-run conglomerates invest and the potential risks they take while doing so.
What did the report say about the SEBI move?
Earlier this year, SEBI held meetings with family offices and asked them to submit writtensubmissions, reported Bloomberg, adding that the final contoursof the new rules are unknown as of now.
The family offices are significant investors who can potentially disrupt markets with their investment decisions. Over the past two decades, the number of massive family offices has increased leaps and bounds, coinciding with India's rapid GDP growth.
India is home to scoresof businesspeople with a net worth of billions. For instance, Mukesh Ambani's net worth is $96.4 billion. Gautam Adani's net worth is $89.6 billion.
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Several family offices are already anchor investors in initial public offerings, such as Wipro billionaire Azim Premji’s Premji Invest, the Bajaj automobile dynasty’s Bajaj Holdings and Investment Ltd.
Family offices are firms that manage the wealth of one family. The market regulator wants to monitor howfamily members of these officialsinvest their wealth. It also wants these family offices to avoid conflicts of interest and insider trading.
Srinath Sridharan, a corporate advisor, said that these may include 3,000 entities, including real estate holding firms, that are separate from the operating businesses.
Bloomberg reports that the markets regulator has asked for their views on participating in the markets as institutional investors, which would offer them preferential allocation in initial public offerings.

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