Business Daily from THE HINDU group of publications
Thursday, Nov 15, 2007
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Business Daily from THE HINDU group of publications Thursday, Nov 15, 2007 ePaper | Mobile/PDA Version |
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Foreign Institutional Investors Markets - Regulatory Bodies & Rulings
Mr M. Damodaran, SEBI Chairman Our Bureau Chennai, Nov. 14 Mr M. Damodaran, SEBI Chairman, reiterated that it was not SEBI’s intention to ban P-Notes, but to encourage registration. “Applications for registration are pouring in,” he said, adding that there were over a hundred of them. Mr Damodaran also stressed that it was not SEBI’s intention to rein-in capital inflows. If there was a slowdown in inflows after the P-notes regulations, it was only incidental. He said that overseas investors were keen on investing in India, adding that investing in Indian derivatives through P-notes was indeed more expensive. Asked why the investors had to be goaded to register themselves and invest directly in India, Mr Damodaran said that earlier there were certain practical difficulties, which had also been removed by regulatory changes. For example, the definition of ‘broad-based’ entity had been changed. Today, promoters of, say, an India fund, could hold/bring in up to 49 per cent of their own funds. Earlier, they could not hold more than 10 per cent. Similarly, the requirement of minimum one-year ‘track record’ of the entity had been changed to include the track record of the fund manager. “We are only tightening P-note regulations, not banning P-notes. But in the process, many investors could directly invest in India and hence the demand for P-notes may come down,” Mr Damodaran said. More Stories on : Foreign Institutional Investors | Regulatory Bodies & Rulings
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