The organisation also warned that it would have severe impact on stocks and rupee.
Taking strong objection to these claims, Securities and Exchange Board of India (Sebi) said in a rare early morning statement, "It is preposterous and highly irresponsible to claim that 75 billion dollars of FPI investment will move out of the country because of Sebi's circular issued in April 2018."
The market regulator, in April, had asked Category II and III FPIs to provide a list of their beneficial owner (BO) in a prescribed format within six months.
It had, however, last month extended the deadline by two months till December for providing a list of beneficial owners, and assured them that issues raised will be looked into by an expert panel.
The decision came after Sebi received representations from market participants, seeking review and additional time for complying with the guidelines.