SEBI Considers Disclosure Rules for Billionaire Family Offices

The Securities and Exchange Board of India (SEBI) has started discussions on new rules for family offices that manage the wealth of billionaire families. Reportedly, the regulator has met with several of the country’s largest family offices this year and has asked others to submit written feedback.

Possible Requirements

One option being considered is asking family offices to disclose the number of entities they control, the size of their assets, and their investment returns. Sebi may also create a separate category to regulate these vehicles. At present, India has no direct regulations for family offices.

Expanding Role

Family offices have grown into major investors in India over the past two decades. They now participate in private equity, startups, and initial public offerings. According to Prime Database, offices linked to Premji Invest, Bajaj Holdings and Investment Ltd., and private firms set up by Shiv Nadar and Narayana Murthy are among those active in listed markets.

Scale of Wealth

India’s richest families manage significant amounts of capital. The Bloomberg Billionaires Index places Mukesh Ambani’s net worth at $96.4 billion and Gautam Adani’s at $89.6 billion. Many family offices linked to such groups operate through multiple entities. Estimates suggest there could be more than 3,000 investment firms, including real estate holding companies, outside the main operating businesses.

Regulatory Focus

SEBI is weighing whether family offices should be allowed to participate as qualified institutional buyers in IPOs. This would give them preferential share allotments alongside mutual funds and insurers. At the same time, the regulator is reviewing how to reduce risks such as insider trading or conflicts of interest.

Read more: Government Considering ₹20,000 Crore Risk Guarantee Fund for Infrastructure Sector.

Conclusion

Family offices have become important participants in India’s financial markets. SEBI’s proposed disclosure rules, once defined, would bring more clarity to how these groups manage and invest their wealth.

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