Sebi prohibits FPIs from issuing P-notes

economictimes.indiatimes.com:

Sebi) Tuesday barred foreign portfolio investors from issuing offshore derivative instruments (ODIs), locally referred to as participatory or P-notes, which have an India-listed security as an underlying asset.

Additionally, the regulator prohibited overseas funds from hedging ODIs with derivative positions on Indian stock exchanges. Furthermore, Sebi asked foreign portfolio investors (FPI) issuing ODIs to obtain ownership information of all the investors holding such instruments.

ODIs with derivatives as underlying/reference, issued and outstanding as on the date of this Circular, shall be permitted to be redeemed within a period of 1 year from the date of this circular. However, no renewal of such ODIs shall be permitted, Sebi said on Tuesday.

P-notes are derivative instruments of Indian-listed financial assets and issued by registered FPIs to their overseas clients.

'Only Securities as Underlying'

• Stock Trading

  Renko Chart Patterns Made Easy

  By — Kaushik Akiwatkar, Derivative Trader and Investor

• Stock Trading

  Complete Guide to Stock Market Trading: From Basics to Advanced

  By — Harneet Singh Kharbanda, Full Time Trader

• Stock Trading

  RSI Trading Techniques: Mastering the RSI Indicator

  By — Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert

• Stock Trading

  Commodity Markets Made Easy: Commodity Trading Course

  By — elearnmarkets, Financial Education by StockEdge

• Stock Trading

  Derivative Analytics Made Easy

  By — Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets

• Stock Trading

  Market 104: Options