MUMBAI: The Securities & Exchange Board of India eased some of the restrictions imposed on foreign institutional investors at its board meeting on Monday, in an effort to bolster capital inflows.
The market regulator announced that the restrictions on offshore derivative instruments in will be removed. The 40 per cent cap on ODIs in both cash as well as derivative contracts will be lifted. P-notes are issued by foreign funds registered in India to unregistered overseas investors. In October last year, the regulator put curbs on them to help the government keep track of foreign flows into the country. FIIs were earlier barred from owning more than 40 per cent of their assets in P-notes and were asked to unwind certain holdings within 18 months. In October 2007, SEBI had placed a ban on either fresh issuance or renewal of PNs by foreign portfolio investors or their sub-accounts in cases where the underlying Indian securities were derivatives. These investors were then directed to wind up their current position over 18 months. It was also decided then to cap the percentage of PNs or offshore derivative instruments (ODIs) outstanding at 40% of the total assets under custody of a registered foreign portfolio investor. Ravichandran K. www.kences1.blogspot.com --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
