#A3RT ``TRUST AND TRADE``

Benchmark Sensex and NSE Nifty 50 plunged 3% each since they hit their all-time highs of 73,427 and 22,124 on January 16.

Though traders blamed this correction to selling by foreign institutional investors (FIIs) after Sebi came up with the additional disclosure norms for foreign portfolio investors, but #HDFCBANK  in a statement said that there was no evidence to support #FPI outflows with the Sebi circular.

Foreign investors sold Indian equities for the fifth straight session till January 24. So far this month, they have net withdrawn Rs 19,307 crore from the equity market.

Two news flow hovering around markets that hold responsible for #FIIs taking a step back from India: First, Sebi's new additional disclosure norms from foreign investors and, second, India Inc scorecard falling below expectations in the third quarter of this fiscal.

Sebi wants additional disclosures from FPIs to prevent companies from manipulating rules on minimum public shareholding and bar global entities from indirectly controlling Indian companies through a chain of shell firms.

FPIs need to give full details of all holders of ownership, economic, and control rights. This will help in identification of ultimate beneficial ownership.

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