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<h1>SEBI Amends Foreign Institutional Investors Regulations: Regulation 15A Introduces New Rules for Offshore Derivative Instruments.</h1> The Securities and Exchange Board of India (SEBI) issued an amendment to the Foreign Institutional Investors Regulations, 1995, effective from February 3, 2004. This amendment introduces Regulation 15A, which allows Foreign Institutional Investors or their sub-accounts to issue, deal in, or hold offshore derivative instruments like Participatory Notes and Equity Linked Notes only with entities regulated by relevant authorities in their home countries, subject to 'know your client' requirements. Existing instruments issued to unregulated entities before this date must expire upon maturity or within five years, whichever is earlier. The amendment aims to enhance regulatory oversight and compliance in foreign investments in Indian securities.