The Securities and Exchange Board of India (Sebi) on Thursday said it had deferred the implementation of a new reporting format for offshore derivatives instruments (ODIs), including participatory notes (P-notes), till June.
ODIs have equity or debt as underlying and are issued by registered foreign institutional investors (FIIs) or sub-accounts to clients abroad.
In January this year, Sebi had asked FIIs issuing such instruments to give seven detailed reports regarding their underlying trade activity for every month, with a six-month lag. This was in addition to the monthly summary report they have to file on the seventh of every month, for the previous month.
“Sebi received representations from a number of FIIs seeking various clarifications on the new format. While these clarifications are being addressed by Sebi, it has been decided to defer the implementation of the new reporting format,” said Sebi.
“It has now been decided that the first such monthly report shall be submitted for July 2011 before August 7, subject to the condition that the additional undertaking shall be implemented from the reporting month of April,” said Sebi.
As of March, the total value of P-notes based on equity and debt, including those on derivatives, stood at Rs 1,75, 097 crore, according to Sebi. This constituted 15.8 per cent of assets under the custody of FIIs.