Mumbai, April 24 -- Foreign portfolio investors (FPIs) will be able to settle stock market trades by paying only the net difference, rather than the full amounts, by December.

On Friday, India's markets regulator issued a detailed framework formalizing a decision cleared at its March board meeting to permit net settlement of funds for outright transactions, with the aim of improving operational efficiency and lowering funding costs for foreign investors.

The Securities and Exchange Board of India (Sebi) had formed a working group in 2025 to discuss the netting framework and issued a consultation paper in January.

Under the existing regime, FPIs are required to settle each leg of a trade separately, even if their net position across buy...