Off shore derivative instruments restricted to regulated counterparties, with KYC required and prohibition on downstream transfers to unregulated persons. The amendment inserts a regulation permitting FIIs and sub accounts to issue, deal in or hold off shore derivative instruments such as Participatory Notes and Equity Linked Notes against Indian listed or proposed securities only in favour of entities regulated in their home jurisdiction, subject to know your client requirements; existing instruments issued to unregulated persons before commencement will expire on maturity or within five years. FIIs and sub accounts must ensure no downstream issuance or transfer of these instruments to persons other than regulated entities.
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.
Off shore derivative instruments restricted to regulated counterparties, with KYC required and prohibition on downstream transfers to unregulated persons.
The amendment inserts a regulation permitting FIIs and sub accounts to issue, deal in or hold off shore derivative instruments such as Participatory Notes and Equity Linked Notes against Indian listed or proposed securities only in favour of entities regulated in their home jurisdiction, subject to know your client requirements; existing instruments issued to unregulated persons before commencement will expire on maturity or within five years. FIIs and sub accounts must ensure no downstream issuance or transfer of these instruments to persons other than regulated entities.
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