Offshore derivative instruments: issuance and transfer limited to Category I eligible investors with KYC, disclosure, and fee obligations. Regulation 21 permits issuance of offshore derivative instruments only by Category I FPIs to persons eligible for Category I registration, subject to the Board's know your client norms and other specified conditions. Transfers require transferees to meet issuance eligibility and normally the issuing FPI's prior consent, except for pre approved transferees. FPIs must disclose ODI terms and parties to the Board as prescribed and collect and deposit the regulatory fee specified in Part C of the Second Schedule from every ODI subscriber.