Market regulator Sebi today allowed French institutional investor Societe Generale to issue overseas derivative instruments, revoking about a year long ban on the FII.
"... Interim direction issued against Societe Generale (SG) ... Stands revoked with immediate effect. Societe Generale is directed to issue off-shore derivative instruments ...," Sebi said in an order.
In January, Sebi had banned Societe Generale from issuing any fresh overseas derivative instrument for providing wrong information about one Hythe Securities Ltd to which it issued such instruments.
Sebi had also asked SG to explain why its registration in India should not be cancelled for providing wrong information on issuance of a financial instrument which enabled an overseas entity to invest in shares of Anil Ambani-led RCOM.
Sebi order said that SG has undertaken steps to validate its systems and processes to ensure that true and correct reports of its offshore derivate instruments (ODI) activity are furnished to the market regulator.
The market regulator, however, warned Societe Generale that any misrepresentation or wrong reporting by the French FII of its ODIs would be "viewed seriously".
ODIs, which are not registered with Sebi, are investment vehicles used by foreign investors for an exposure in Indian equities or equity derivatives.
