India’s markets regulator has opened talks about bringing family offices, the private investment vehicles used by wealthy families, under its supervision, as per a report by Bloomberg.

As per Bloomberg, officials are reportedly considering rules that would require family offices to reveal their legal entities, assets and investment returns for the first time, and to create a distinct regulatory category for these outfits, the sources said, speaking on condition of anonymity, the report added.

The Securities and Exchange Board of India (SEBI) has said it needs clearer visibility into how large, family-run conglomerates allocate capital in publicly traded securities and the risks that flow from those investments, Bloomberg added. SEBI held meetings earlier this year with several of the country’s largest family offices and solicited written submissions from others, they said. The final form and timing of any new regulations remain uncertain. There is currently no bespoke regime for family offices in India, the report added.

Family offices: Evolving dynamics 

Family offices once rare in India two decades ago now play a significant role as backers of startups, private equity investors and participants in initial public offerings, often operating through regulated structures such as alternative investment funds or via shadow-lending vehicles, as per the report.

The regulatory body did not respond to Bloomberg’s query.

Family offices come in different forms. Single-family offices manage the finances and affairs of one clan; in some jurisdictions, such as Singapore and Hong Kong, rules and thresholds determine what benefits or licensing those offices receive. In India, however, the capital backing a family office may originate from numerous individuals, entities and companies across family branches, complicating oversight, one participant in the talks said, the report added.

SEBI on Family Offices

Financial Express.com could not independently verify the news either and has reached out to SEBI seeking clarification on the news. We are awaiting SEBI’s response on the email seeking clarification on the same. We will be update and add the response as soon as we receive it.