SEBI ROLLS BACK P-NOTE CURBS

The SEBI has lifted curbs on foreign institutional investors (FIIs) imposed a year ago to stem huge sales by FIIs that have triggered a 42 per cent slide in the Sen sex this year. A requirement forcing investors to register in India before buying shares and limits on offshore derivatives that were imposed last October have been lifted with immediate effect. Under the October rules, foreign investors could only issue offshore derivatives linked to stocks up to a limit of 40 per cent of assets
under custody as of September 30. The regulator also overturned rules that banned overseas investors from issuing participatory notes (P-notes) on derivatives. This means investors can issue P-notes on single stock and index F & O.