The paper propose to permit netting of funds for cash market transactions by Foreign Portfolio Investors (FPIs) to improve operational efficiency and reduce funding costs. Currently, FPIs must settle purchases and sales on a gross basis, even when same day buy and sell values offset, leading to temporary liquidity strain, forex slippage, and higher funding costs, especially during index rebalancing. The proposal would allow netting only for outright transactions (securities with either buy or sell, not both, in a settlement cycle), while continuing gross settlement for non-outright transactions to mitigate market risk. Securities settlement, STT, and stamp duty would remain delivery-based. The comments/ feedback is invited from stakeholders.