SEBI may review policy on participatory notes

[K.Karthik Raja]

SEBI may review policy on participatory notes
Monday, Mar 10

MUMBAI - Securities and Exchange Board of India may review its
policy in respect of participatory notes on concerns over outflow of
funds from foreign institutional investors since October, CNBC-TV18
reported today.
Participatory notes are issued by FIIs registered in India to
unregistered overseas investors.
SEBI is in talks with National Stock Exchange, Bombay Stock
Exchange, and market participants in this regard.
In October, SEBI had approved its draft proposals on the issue of
participatory notes, ending the practice of FIIs issuing securities
backed by derivatives.
SEBI later introduced new over-the-counter products to fill the
void caused by FII outflows but now feels the need for additional
steps in this regard.
A SEBI panel will present its report on the participatory note
issue in
2-3 weeks.