SEBI ALLOWS FIIs TO ISSUE ODIs TO NRIs

In an effort to strengthen the regulatory oversight on overseas entities and individuals investing in the Indian Capital Market , the Securities and Exchange Board of India (SEBI) introduced the concept of 'beneficial owner' by asking participatory note (PN) issuing foreign institutional investors (FII) to report their activities. It also removed restrictions on FIIs to issue ODI (Offshore Derivative Instruments) to non resident Indians (NRI)s. Participatory Notes are derivative instruments based on
Indian securities issued by FIIs to those overseas entities or individuals who prefer to invest indirectly into Indian stock markets.