Offshore derivative instruments: issuance limited to persons regulated by an appropriate foreign regulatory authority, subject to KYC. Issuance and transfer of offshore derivative instruments by foreign institutional investors are permitted only to persons regulated by an appropriate foreign regulatory authority and only after compliance with know your client norms; non-compliant holdings and instruments issued by sub-accounts before the 2008 amendment had to be cancelled, redeemed or closed out by 31 March 2009. The term 'offshore derivative instrument' denotes instruments issued overseas against securities listed or proposed to be listed on a recognised Indian stock exchange. The regulated-person definition includes entities overseen by foreign central banks, securities or futures regulators, and certain broad-based or institutionally managed funds.