SEBI Regulates Offshore Derivative Instruments in India (2017)
1 report, 1 independent
Updated Thu 02:58
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What happened
The Securities and Exchange Board of India (SEBI) regulated Offshore Derivative Instruments (ODI) in 2017 to increase transparency and accountability in the market. A circular issued on July 7, 2017, prohibited Foreign Portfolio Investors (FPIs) from issuing ODIs using derivatives as the underlying instrument, unless the derivative was used for hedging purposes.
From legallyindia.com
Why it matters
The regulation was part of SEBI's efforts to streamline the monitoring of ODIs and encourage direct investments through the Foreign Portfolio Investment route. The rules specifically targeted speculative trades being undertaken in the derivatives market.
From legallyindia.com
Who's involved
- Securities and Exchange Board of IndiaRegulated offshore derivative instruments in India.
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The entities involved
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Securities and Exchange Board of India
registration authority
Related events
- A ruling from the Delhi High Court impacts entities regulated by SEBI.
- SEBI is revamping the rules and framework for Portfolio Management Services (PMS).
- SEBI introduced stringent rules in India regarding the operation of the stock exchange.
- SEBI approved a new framework for Portfolio Management Services (PMS) to invest in foreign securities.
- SEBI and RBI implemented financial market risk controls, and SEBI shared data with the Finance Minister.