The stock market regulator has deferred the implementation of the new reporting format that FIIs were expected to file for offshore derivative instrument (ODI) positions to October 7. FIIs were earlier told to use the new reporting format from August 7. In view of clarifications sought, the SEBI has clarified on various items that are a part of the format.
SEBI has also clarified that the current methodology being used for futures and options would remain and the outstanding value of ODIs will continue to be represented in notional terms. SEBI had asked for details of beneficial owners and ODIs in its new format, which was expected to contain details of underlying trades (date of transaction, name of security, quantity and value) and AUM in equity, debt and derivatives on a monthly basis.
For instance, if an ODI on the Morgan Stanley Capital International's MSCI India index is hedged with multiple types of Indian securities and left partly un-hedged, the FII has to report every security position in separate rows and provide a blank column for the un-hedged portions. Hence the outstanding value of the ODIs will be the summation of all such rows. ODI issuers have been asked to link the hedged positions to the extent possible. FIIs have been asked to work out linkages for all outstanding ODI positions as on September 30, 2011, and report to the market regulator by March 2012 along with the first six months' lag transaction reports.
FIIs have been asked to provide the country details of the end beneficial owner and FIIs have also been asked to report the SEBI registration numbers of the subscriber FIIs in addition to their names.z
EBI has asked custodians to bring this circular to the notice of their FII clients.