Sebi defers diktat to monitor foreign holding in DRs till further notice

Regulator yields to requests made by market participants

The Securities and Exchange Board of India (Sebi) has put on hold the implementation of the diktat requiring custodians to monitor foreign holding in depository receipts (DRs).

The new norms, which became applicable from April 1 and were postponed by a month, require designated depository participants or custodians to collect, monitor and report information every month on offshore derivatives instruments (ODIs) and DRs held by foreign portfolio investors (FPIs) and those foreign entities which belong to the investor group of the FPIs.

"In view of the representation from market participants, Sebi has advised the implementation of the Sebi circular dated