Conditions for issuance of offshore derivative instruments.

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....ded that where at the commencement of the Securities and Exchange Board of India (Foreign Institutional Investors) (Amendment) Regulations, 2008, any person other than a person regulated by an appropriate foreign regulatory authority is holding offshore derivative instruments issued by or on behalf of the foreign institutional investor, such foreign institutional investor shall ensure that they are cancelled, redeemed or closed out, before the thirty first day of March, 2009. (2) A foreign institutional investor shall ensure that no further issue or transfer is made of any offshore derivative instruments issued by or on behalf of it to any person other than a person regulated by an appropriate foreign regulatory authority. ^2[(3). Omi....

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.... "person regulated by an appropriate foreign regulatory authority" means and includes the following, namely:- (i) any person that is regulated/supervised and licensed/registered by a foreign central bank; (ii) any person that is registered and regulated by a securities or futures regulator in any foreign country or state; (iii) any broad based fund or portfolio incorporated or established outside India or proprietary fund of a registered foreign institutional investor or university fund, endowment, foundation, charitable trust or charitable society whose investments are managed by a person covered by clauses (i), or (ii) above.]       ------------------- Notes: 1. Substituted by the SEBI (Foreign In....

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....r on behalf of a foreign institutional investor with derivatives tradable on any recognized stock exchange in India as underlying: Provided that where any such offshore derivative instruments had been issued prior to the commencement of the Securities and Exchange Board of India (Foreign Institutional Investors) (Amendment) Regulations, 2008 by or on behalf of a foreign institutional investor and are outstanding at such commencement, they shall be cancelled or redeemed or closed out before the thirty first day of March 2009: Provided further that such offshore derivative instruments issued before the commencement of the Securities and Exchange Board of India (Foreign Institutional Investors) (Amendment) Regulations, 2008 by or on beha....

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.... a sub-account as on the thirtieth day of September 2007 is less than forty per cent of its assets under custody as on that date, further issuance of offshore derivative instruments in any period of twelve months shall not exceed five per cent. of the total value of its assets under custody: Provided that such further issuance shall not result in the total value of offshore derivative instruments exceeding forty per cent of the assets under custody. 5. Prior to the omission, sub-regulation (7) of regulation 15A as inserted by SEBI (Foreign Institutional Investors) (Amendment) Regulations, 2008, w.e.f. 22-5-2008.and read as under: (7) Where offshore derivative instruments issued by or on behalf of a sub account are outstanding as on....