FPIs ask Sebi to clear haze around p-notes circular

Sebi is expected to come out with clarifications on some of these issues

Foreign portfolio investors (FPIs) are seeking clarity on the circular on participatory notes (p-notes) or offshore derivative instruments (ODIs), issued by the Securities and Exchange Board of India (Sebi) in July.

Investors are unclear whether the hedging position needs to be looked at, at the issuer level or at the subscriber level, and whether the derivatives positions can be taken against equity investments indirectly through foreign currency convertible bonds (FCCBs) or American depository receipts/global depository receipts (ADRs/GDRs). 

FPIs have told the regulator it would be difficult for issuers to discern between speculative and hedging positions of individual investors, and to ascertain the