SEBI acts; eases P-notes norms
October 6th, 2008
In order to increase the capital inflows in Indian markets today SEBI chairman Mr. C. B. Bhave has announced changes in P-notes policy. SEBI today scraped a rule which allowed P-notes could only account for upto 40% of the value of assets foreign fund, he also said entire framework for FII participation needs to be reviewed.
As per Oct 2007 decision FII’s were expected to bring down total p-notes issuance to 40% of their total assets before march 2009. However Mr. Bhave himself told the reporters that FII issuance of P-notes has already come down substantially and thus today’s decision may not make any immediate difference to FII position.
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