ODI issuance with derivative underlying limited to equivalent hedging; existing non-hedging instruments must be wound up and certified. ODI-issuing FPIs are barred from issuing ODIs with derivatives as underlying except where the derivative position is solely for equivalent hedging of the equity shares held by the FPI. Existing non-hedging ODIs must be liquidated by maturity or the prescribed cutoff, with an expectation of earlier liquidation. Fresh issuances require a compliance officer certificate, to be filed with monthly ODI reports, certifying the derivative is for equivalent hedging in the same underlying equity. The directive is immediately effective and DN/ custodians must notify FPI clients.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
ODI issuance with derivative underlying limited to equivalent hedging; existing non-hedging instruments must be wound up and certified.
ODI-issuing FPIs are barred from issuing ODIs with derivatives as underlying except where the derivative position is solely for equivalent hedging of the equity shares held by the FPI. Existing non-hedging ODIs must be liquidated by maturity or the prescribed cutoff, with an expectation of earlier liquidation. Fresh issuances require a compliance officer certificate, to be filed with monthly ODI reports, certifying the derivative is for equivalent hedging in the same underlying equity. The directive is immediately effective and DN/ custodians must notify FPI clients.
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