**FPI Cash Obligation Netting Proposed** The Securities and Exchange Board of India (SEBI) has introduced a proposal to permit Foreign Portfolio Investors (FPIs) to net their cash obligations for trades executed on the same day, specifically for both buy and sell transactions. This regulatory adjustment is designed to achieve several key market benefits. It is expected to **lower funding costs** for FPIs significantly. Furthermore, the netting mechanism aims to enhance **operational efficiency**, particularly on days characterized by **high trading volumes**. By allowing netting, the proposal intends to alleviate liquidity stress within the market. Crucially, SEBI's assessment indicates that implementing this change will not introduce elevated **systemic risk**. The focus remains on improving market function and cost-effectiveness.