Proposed Measures:
Following consultation with the Government, the following measures are proposed to be implemented urgently:
1) FIIs and their sub-accounts shall not issue/renew ODIs with underlying as derivatives with immediate effect. They are required to wind up the current position over 18 months, during which period SEBI will review the position from time to time.
2) Further issuance of ODIs by the sub-accounts of FIIs will be discontinued with immediate effect. They will be required to wind up the current position over 18
months, during which period SEBI will review the position from time to time.
3) The FIIs who are currently issuing ODIs with notional value of PNs outstanding (excluding derivatives) as a percentage of their AUC in India of less than 40%
shall be allowed to issue further ODIs only at the incremental rate of 5% of their AUC in India.
1 AUC = Assets Under Custody of all FIIs/Sub Accounts
4) Those FIIs with notional value of PNs outstanding (excluding derivatives) as a percentage of their AUC in India of more than 40% shall issue PNs only against
cancellation / redemption / closing out of the existing PNs of at least equivalent amount.
Following consultation with the Government, the following measures are proposed to be implemented urgently:
1) FIIs and their sub-accounts shall not issue/renew ODIs with underlying as derivatives with immediate effect. They are required to wind up the current position over 18 months, during which period SEBI will review the position from time to time.
2) Further issuance of ODIs by the sub-accounts of FIIs will be discontinued with immediate effect. They will be required to wind up the current position over 18
months, during which period SEBI will review the position from time to time.
3) The FIIs who are currently issuing ODIs with notional value of PNs outstanding (excluding derivatives) as a percentage of their AUC in India of less than 40%
shall be allowed to issue further ODIs only at the incremental rate of 5% of their AUC in India.
1 AUC = Assets Under Custody of all FIIs/Sub Accounts
4) Those FIIs with notional value of PNs outstanding (excluding derivatives) as a percentage of their AUC in India of more than 40% shall issue PNs only against
cancellation / redemption / closing out of the existing PNs of at least equivalent amount.
SOURCE: SEBI
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