M Damodaran, chairman, Securities and Exchange Board of India (Sebi), today defended the move to restrict issuance of participatory notes (P-notes) saying enough time was given to foreign institutional investors."We have been unfairly accused of doing things suddenly. But we have put people on notice four-and-half years back," Damodaran said at the Fortune Global Forum here.He said FII regulations issued in February 2004 had made it clear that PNs issued to unregulated entities would have to be wound up. Unregulated PNs have to wind up in 18 months, he said, adding that the regulator has given two more months than the original time frame.The regulator does not want investments coming through the sub-accounts of FIIs through an opaque manner, he added.Damodaran also said that the limit of FII participation in the bond market will go as the markets grow."There are limitations on foreign particiaption in the bond market at this point of time. You will see this moving away once the markets grow," Damodaran said."We are not the ones who will do it, there are other people who will do it," Damodaran added.
