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Informist, Monday, Sept. 30, 2024

--SEBI: Offshore derivatives instrument disclosure norms same as for FPIs 

MUMBAI – The Securities and Exchange Board of India Monday said disclosure requirements for offshore derivative instruments will be at par with that of foreign portfolio investors. A monitoring and compliance mechanism will be put in place for the submission of segregated portfolio level-related information by foreign portfolio investors to the custodian, the regulator said in a press release.

SEBI also said that non-compliance of the disclosure will lead to redemption of offshore derivative instruments or liquidation of segregated portfolios within 180 days. Such defaulting subscribers will be ineligible to buy or hold any positions in offshore derivative instruments from a foreign investor issuing such instruments, it said.

The market regulator mandated the issuance of offshore derivative instruments by foreign portfolio investors only through a separate registration, with no proprietary investments under such registration, according to the press release. SEBI also approved the proposal to prohibit offshore derivative instruments-issuing foreign investors from hedging the instrument with derivatives positions on stock exchanges. Existing offshore derivative instruments hedged with derivatives can either be redeemed or hedged with cash positions on a one-to-one basis, within one year from the date of issuance of guidelines on the same, SEBI said.  End

Reported by Anjana Therese Antony

Edited by Ashish Shirke

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